Wisconsin DOJ, Berrada Properties agree to $1.7M+ resolution
MILWAUKEE - Wisconsin Attorney General Josh Kaul on Wednesday announced a more than $1.7 million agreement between the state Department of Justice and Berrada Properties Management, Inc. to resolve a lawsuit.
The agreement between the DOJ and Milwaukee landlord Youssef "Joe" Berrada and his company stems from a lawsuit filed in November 2021. The agreement was sent to the Wisconsin Legislature's Joint Finance Committee on Finance for approval.
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What's next for Berrada?
According to the DOJ, in addition to the monetary payment of more, the resolution includes "significant injunctive provisions" to address harm stemming from actions that the state alleged broke the law.
The monetary payment includes a civil forfeiture of $986,455.92, attorney fees and costs of $249,225, and other surcharges and fees provided by state statute.
Berrada Properties
As part of the agreement, the DOJ said Berrada agreed to vacate and seal eviction judgments affected by late rent fees or attorney fees that the state alleged were illegally charged to tenants. In addition, Berrada agreed to implement remediation programs – including an income-based rental program and an eviction diversion program – as well as offer rent assistance grants and move-out assistance payments. Community Advocates, a third-party administrator, will oversee the programs.
By entering into the agreement, the DOJ said Berrada does not admit liability for any claim alleged in the state’s lawsuit – or to any violation of law or wrongdoing alleged by the state. Berrada has denied that it violated any law.
What tenants can do
The DOJ said the agreement also includes a restitution program that requires Berrada Properties to make payments to certain tenants. Tenants will not receive a payment if the balance of restitution owed is less than the balance of legally valid unpaid rent owed prior to the court signing the consent judgment.
Berrada Properties has estimated that approximately $850,000 in restitution will be paid, according to the DOJ. Based on the state's allegations, Berrada previously returned more than $1 million to tenants for late rent payments.
What is Berrada Properties?
Berrada Properties Management, Inc. controls more than 200 limited liability companies that, combined, own nearly 9,000 apartment units in Milwaukee and Racine, according to the DOJ.
Youssef Berrada is the sole owner of Berrada Properties, which manages all the apartment units.