Dive Brief:
- The U.S. Justice Department filed a lawsuit against Thomas Ray Kelso, the former owner and manager of rental properties previously known as Briarwood Apartments in Searcy, Arkansas, for “engaging in sexual harassment and retaliation in violation of the Fair Housing Act,” according to a Nov. 18 agency press release.
- Per the lawsuit, filed in the U.S. District Court for the Eastern District of Arkansas, Kelso sexually harassed female tenants beginning in 2001 until his arrest in 2023. He was convicted in January 2025 for federal sex trafficking and possession with intent to distribute methamphetamine and sentenced to 20 years in federal prison, according to the DOJ.
- The lawsuit also names Searcy, Arkansas-based Avatar Investments LLC, which owned the rental properties during Kelso’s management and alleged sexual harassment of female tenants. The complex has eight two-story structures with 44 apartment units.
Dive Insight:
The complaint alleges that Kelso made repeated and unwelcome sexual comments to female tenants, touched female tenants’ bodies without their permission, requested sexual contact and offered reduced or free rent in exchange for sexual contact. He also allegedly took retaliatory actions against female tenants who refused his sexual advances, including threatening to cut electricity or denying laundry access.
“Central to his scheme was conditioning the basic needs of a person’s home — electricity, air conditioning and laundry — on female tenants acquiescing to his demands for sex or putting up with his repeated sexual comments and unwanted touching,” the complaint reads.
Kelso’s actions caused the tenants to suffer fear, anxiety and emotional distress and interfered with their ability to secure and maintain housing, per the suit.
“This defendant intentionally lured and threatened vulnerable victims, forcing them to perform sexual acts in exchange for some of life’s essentials — shelter and electricity. He was rightfully sentenced to serve 20 years in federal prison,” said U.S. Attorney Jonathan D. Ross for the Eastern District of Arkansas in the release.
“Just as Kelso continues to be held accountable for his reprehensible acts, the housing provider, Avatar Investments, LLC, should also be held accountable for its total lack of oversight of its property.”
The lawsuit seeks monetary damages to compensate those harmed by the alleged harassment, civil penalties “to vindicate the public interest” and a court order barring future discrimination. Multifamily Dive was unable to reach Avatar Investments for comment at press time.
