An Iowa property manager and the rental company’s owner have agreed to pay $325,000 to settle a federal lawsuit alleging a decades-long pattern of sexual harassment against female tenants, the Department of Justice announced Sunday.
The settlement resolves a civil rights case filed in January 2025 against property manager Kurt Williams and Gearhead Properties LC. Federal prosecutors alleged that for more than 20 years, Williams utilized his position of authority to prey on vulnerable women living in the units he managed.
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According to court documents filed in the U.S. District Court for the Southern District of Iowa, Williams’ behavior went far beyond verbal harassment. The complaint details allegations that he exposed himself to tenants and explicitly demanded sex or sexual acts in exchange for “tangible housing benefits,” such as rent reductions.
When women rejected his advances, officials say Williams retaliated. The lawsuit claims he initiated evictions or refused to perform necessary repairs on the units of those who turned him down.
“Sexual misconduct in housing is not a misunderstanding — it is an abuse of power that turns shelter into leverage, and nobody should ever have to trade their safety for a place to live,” said Special Agent in Charge Machelle Jindra with the HUD Office of Inspector General.
Under the terms of the agreement, the defendants will pay $315,000 directly to the tenants harmed by the harassment, plus a $10,000 civil penalty to the U.S. government.
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Perhaps most significantly, the deal permanently removes Williams from the industry. He is banned for life from managing residential rental properties and is prohibited from contacting any of the victims identified in the case.
Assistant Attorney General Harmeet K. Dhillon of the DOJ’s Civil Rights Division emphasized that the government will continue to pursue landlords who exploit their tenants.
“A home should be a place of security and comfort, not fear,” Dhillon said.
Gearhead Properties LC was named in the suit under vicarious liability, a legal standard that holds property owners accountable for the discriminatory actions of their agents or employees.
“Housing should not be a tool used for exploitation,” added U.S. Attorney David C. Waterman. “Our office will vigorously uphold the Fair Housing Act to protect tenants’ dignity, safety, and equal access to housing.”
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