You don’t often see landlords sentenced to that kind of jail time for crimes related to their business, but this story is proof it can happen. Fifty-nine-year-old David Merryman may not walk away from the federal prison system until he’s 76, assuming he lives that long.
Landlord Accused of a Long Pattern of Illegal Acts
According to prosecutors, one factor in the long sentence is the fact he’s been committing crimes for more than ten years before his arrest, reports WVEC. It states that the owner of 39 properties across Newport News and Hampton pleaded guilty to wire fraud, aggravated identity theft, and race-based interference with employment and housing.
The allegations against Merryman are essentially he was a racist, thieving slumlord who abused and took advantage of his low-income tenants.
At a December sentencing hearing, the defendant’s attorney asked for a six-year sentence, while prosecutors sought a 14-year sentence. Senior US District Court Judge Raymond Jackson decided the former landlord deserved a 17-year sentence.
Landlord Allegedly Used Vulnerable People to Illegally Obtain Government Money
Ted Rose, a former FBI special agent who investigated the case, told the TV station the case is unusual because it combined fraud with a defendant engaging in hate crimes, and the large number of people he abused, the extent of the abuse, and the cruelty that he showed.
During the sentencing hearing, Merryman announced he was sorry and humbled. He also apologized to his tenants and the Newport News city workers he had affected. The indictment paints a picture of actions worth apologizing for.
It states Merryman showed a pattern of intimidation of his Black tenants, which included the use of racial slurs and threats of physical violence. Prosecutors stated his use of racist language was how he did business. It resulted in more tenant turnover, resulting in him collecting more money.
Merryman was quoted as threatening to turn the children of a Black tenant into “potting soil.” Rose stated after tenants moved in, they demanded he live up to his promises of making repairs. He would then racially harass and intimidate them until they moved out or he evicted them.
It wasn’t just Merryman’s language that was disgusting. It was also the conditions his tenants lived in:
- Months without major problems being fixed
- Water leaks
- Rotting floors
- Rodent infestations
- Improper plumbing leading to sewage leaks inside homes
- Non-functioning toilets
Evidence showed that one tenant paid rent regularly for six years until she lost her job after she was hospitalized during the pandemic. Merryman allegedly forged her signature to get $15,000 in government rent relief, then evicted her and threw out her belongings while she was in the hospital.
Evidence Showed Pattern of Illegal Acts, Not “One Off” Mistakes Made in Good Faith
Rose said the investigated “bad actors” involved in Housing and Urban Development (HUD) programs involving affordable housing. He said Merryman was the first case where criminal charges were filed against a landlord because he knowingly failed to maintain safe and sanitary conditions.
For landlords to get HUD payments, they must certify their housing is up to specific standards, and Merryman made false statements to HUD. He also pled guilty to:
- Forging tenant signatures on pandemic rent relief applications
- Fraudulently obtaining substantial initial tenant payments (for security deposits and prepaid rent), then evicting them
Merryman’s pattern of illegal conduct established his specific intent to defraud. The fact that he repeatedly committed this crime showed that it wasn’t an unusual mistake.
We’re Here to Help
If you have questions about the fair housing laws, laws against harassing tenants, or the eviction process, call the AWB Law PC team at (949) 244-4207 or complete our online contact form today. We can discuss your situation, how California laws may apply, and how we can help.
