In February 2026, the U.S. Department of Justice announced an $850,000 settlement of a housing sexual harassment lawsuit in Lexington, Kentucky. The government had alleged that two property managers sexually harassed female tenants for years. The case is a housing sexual harassment matter brought under the federal Fair Housing Act, not a criminal case.
What the lawsuit alleged
The Justice Department filed the lawsuit in federal court in the Eastern District of Kentucky in November 2024 and amended it in June 2025. According to the Department, the complaint alleged that two men who managed rental properties in Lexington sexually harassed female tenants over a period of decades.
The Department said the alleged conduct included demanding sex in exchange for housing benefits, making unwelcome sexual comments, entering tenants’ homes without permission, groping tenants, and taking action against tenants who refused or objected. These were allegations in a civil lawsuit. The settlement resolves the case without a trial, so a court did not decide whether they were true.
We are not naming the two managers because they were not criminally convicted. The Justice Department’s press releases, listed below, contain the full case details.
Who else was named
The lawsuit also named 17 property owners that the Department alleged were responsible for the managers’ conduct, including Fox Den Properties LLC and Griffith Market Inc. The government’s theory was that the owners were vicariously liable, meaning responsible for the acts of the people who managed their properties.
This reflects a federal fair housing rule. Under a HUD regulation, a person can be liable for a discriminatory housing practice by their agent or employee, consistent with agency law. A separate part of the rule covers a failure to act on harassment the person knew or should have known about. Whether an owner is responsible in any given case depends on the facts.
What the settlement requires
According to the Justice Department, the settlement includes:
- $845,000 in payments to tenants the government identified as harmed
- A $5,000 civil penalty paid to the United States
- A permanent bar on the two managers managing rental properties
- A bar on the two managers contacting the people they were alleged to have harmed
- Fair housing training and new policies
The Department said the Office of Inspector General at the U.S. Department of Housing and Urban Development helped with the investigation.
The amount in this settlement reflects the facts and people in this case. It does not show what any other claim may be worth.
Why this matters for renters and buyers
People who manage, show or rent homes often hold keys and have private access to where tenants live. Federal law treats sexual harassment by landlords, property managers and others who control housing as sex discrimination. The Justice Department runs a Sexual Harassment in Housing Initiative focused on these cases.
Our page on real estate agent sexual assault explains how fair housing law, broker supervision rules and state licensing may apply. Our sexual assault and abuse overview covers the broader area.
What this means for survivors
If a landlord, manager or agent harassed or assaulted you, it was not your fault, even if you went along with a demand because you needed a place to live. You can report to HUD or to the Justice Department’s tip line. Deadlines for fair housing complaints and civil lawsuits are short and vary by claim and by state, so a lawyer can review the specifics with you.
This article is general information about how these cases work. It is not legal advice, it does not create an attorney-client relationship, and no two claims are alike. If something here sounds like your situation, the useful next step is a conversation about the facts.
