Justice Department Secures $850,000 Settlement from Lexington Property Managers for Decades of Sexual Harassment Against Female Tenants

In a significant move to protect tenants’ rights, the Justice Department announced that owners and property managers of residential rental units in Lexington, Kentucky, have agreed to pay $850,000 to resolve a federal lawsuit over decades of sexual harassment by two property managers.

The settlement marks a critical step in addressing abuse in housing and reinforcing tenants’ safety.

Decades of Alleged Harassment

The lawsuit, filed in November 2024 in the U.S. District Court for the Eastern District of Kentucky and later amended in June 2025, targeted property managers Adnan and Mohammed Shalash.

Federal officials allege that the Shalash brothers subjected female tenants to long-standing sexual harassment, exploiting their housing needs as leverage.

The Department alleges that the harassment included offering housing benefits in exchange for sexual favors, making unwelcome sexual comments, entering tenants’ homes without permission, groping, and taking retaliatory housing actions against those who refused advances.

These actions reportedly affected multiple properties across Lexington for years.

Accountability for Property Owners

Seventeen property owners, including Fox Den Properties LLC and Griffith Market Inc., were also named in the lawsuit.

Federal authorities argue that these owners are vicariously liable for the actions of the Shalash brothers.

“Adnan and Mohammed Shalash exploited tenants’ fundamental need for housing to commit serious abuses of power,” said Special Agent in Charge Shawn Rice of HUD’s Office of Inspector General.

“This settlement sends a clear message: those who abuse vulnerable tenants will be held accountable.”

Justice Department’s Firm Stance

Assistant Attorney General Harmeet K. Dhillon emphasized the department’s commitment:

“Women should never feel unsafe in their own homes.

We are committed to vigorously protecting the rights of vulnerable tenants and holding housing providers accountable.”

First Assistant U.S. Attorney Paul C. McCaffrey added that while the harm caused by decades of harassment is difficult to measure, the settlement offers some measure of justice for victims and aims to prevent future misconduct.

Terms of the Settlement

Under the settlement, the defendants will pay $845,000 to victims and a $5,000 civil penalty to the U.S. government.

The Shalash brothers are permanently barred from contacting the victims or managing residential properties.

Additionally, they must implement policies and undergo training to prevent future discrimination.

The Department of Housing and Urban Development’s Office of Inspector General played a key role in the investigation that uncovered the abuses.

Resources for Victims

Victims of landlord sexual harassment or other housing discrimination are encouraged to contact the Justice Department’s Housing Discrimination Tip Line at 1-800-896-7743 or submit a report online.

This case is part of the Justice Department’s Sexual Harassment in Housing Initiative, launched in 2017, which has filed 52 lawsuits and recovered nearly $18 million for victims nationwide.

What’s Next?

While this settlement addresses the Lexington cases, federal authorities continue monitoring compliance with the settlement terms.

HUD and the Justice Department will ensure training and policy reforms are fully implemented to protect tenants in other properties owned or managed by the defendants.

Advocates say this case highlights the need for tenants to report abuse promptly and for property owners to maintain strict oversight of their managers.

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Summary

• Justice Department settles lawsuit for $850,000 over decades of sexual harassment in Lexington rental properties.

• Property managers Adnan and Mohammed Shalash were accused of exploiting tenants’ housing needs to make sexual advances.

• Seventeen property owners, including Fox Den Properties LLC and Griffith Market Inc., were named for vicarious liability.

• Settlement includes compensation to victims, civil penalties, permanent bans, and mandatory training.

• Case is part of the federal Sexual Harassment in Housing Initiative, which has recovered nearly $18 million for victims since 2017.