AG Frosh Settles with Kushner-Backed Management Co. Over Alleged Rental Violations

Lori Kalani, Bernard Nash
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  • Maryland AG Brian Frosh reached a settlement with Westminster Management, LLC—a company owned by the family of Jared Kushner—to resolve allegations that Westminster and several related corporate entities (collectively, “Westminster”) violated Maryland’s Consumer Protection Act and other statutes by assessing tenants a wide range of illegal fees and failing to property maintain rental properties, among other things.
  • According to the Final Order, a 2019 Statement of Charges against Westminster alleged that Westminster committed unfair or deceptive trade practices by, among other things, collecting excess lease application fees, misapplying rent payments to trigger late fees, collecting consumer debts without a required collection agency license, collecting or attempting to collect debts it knew or should have known were not owed, failing to return security deposit interest and small credit balances, and failing to adequately maintain rental dwellings.
  • Under the terms of the Order, Westminster will pay a civil penalty of $3,250,000. Westminster may receive up to $800,000 in credit against this penalty for restitution paid to consumers who successfully file claims with a special master for rent rebates for serious maintenance issues experienced during their tenancy. Westminster will also be prohibited from charging illegal fees, required to company with Maryland’s Security Deposit law, maintain required licenses and meet maintenance standards.
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