Berrada Settles DOJ Lawsuit
Landlord Youssef Berrada, charged with many violations, will pay $1.7 million.
Attorney General Josh Kaul announces a lawsuit against Milwaukee landlord Youssef Berrada, and his property management company. Photo taken November 16, 2021 by Graham Kilmer.
Berrada Properties Management, Inc. has agreed to pay $1.7 million to settle a lawsuit brought by the Wisconsin Department of Justice (DOJ) on behalf of its tenants.
Berrada Properties is owned by notorious landlord Youssef “Joe” Berrada, who is the sole owner of more than 200 different limited liability companies. Berrada owns more than 9,000 rental units in Racine and Milwaukee. He has become infamous for the number and frequency of his evictions, at times filing hundreds of evictions in a single month.
In 2021, Attorney General Josh Kaul and the DOJ brought a civil suit against Berrada, alleging numerous violations of state law ranging from illegal lease agreements to unfair billing practices, fraudulent representations, confiscating personal property, illegal eviction practices and illegally withholding security deposits.
“The protections that state law provides for tenants are in place for good reasons, and those protections are especially important when folks are faced with the possibility of being evicted,” Kaul said in a statement Wednesday. “I’m proud that we’ve reached this landmark proposed resolution.”
The settlement includes a $1.7 million civil forfeiture and more than $3.5 million in mandatory programs and restitution for Berrada tenants.
The DOJ brought the suit on behalf of the state Department of Agriculture, Trade and Consumer Protection — which conducted investigations into violations of consumer protection laws by Berrada Properties Management.
When the attorneys filed suit, their complaint created a picture of a landlord using fees and illegal practices to extract money out of tenants on top of their rent; torment renters with dangerous, sometimes needless renovations; profit from the evictions process; and push tenants out of their homes when it was expedient.
The $1.7 million settlement includes a $986,455 civil forfeiture and $249,225 in attorneys fees and other costs. However, the agreement includes provisions that require Berrada to implement several programs for renters overseen by Community Advocates, a local non-profit that works on tenant advocacy and has run rental assistance programs.
Notably, Berrada has agreed to nullify any legal judgments against tenants that were the result of rental and attorneys fees the state alleged were illegal. The records will also be sealed. Berrada will also begin running an “income-based rental program” for 300 tenants for a period of three to five years; an eviction diversion program; create a $1.3 million fund providing rent assistance payments to qualifying tenants; and offer up to $400,000 in move out assistance so tenants can move before an eviction is filed.
Berrada will also make an estimated $850,000 in restitution payments to tenants on top of the more than $1 million in returned payments already made based upon the state’s allegations, according to the DOJ. The restitution will go to tenants who paid fees the state alleged were illegal, did not get full credit for a security deposit, had property confiscated or faced illegal evictions.
By agreeing to the settlement, Berrada will not admit liability for anything alleged by the state, nor will the firm admit to any illegal actions or wrongdoing.
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