A longtime Iowa property manager and a rental company owner have agreed to pay $325,000 to resolve a federal civil rights lawsuit alleging decades of sexual harassment against female tenants, the U.S. Department of Justice announced Sunday.
The settlement concludes a lawsuit filed in January 2025 in the U.S. District Court for the Southern District of Iowa against Kurt Williams, a property manager, and Gearhead Properties LC. Federal prosecutors alleged that Williams abused his authority for more than 20 years, targeting vulnerable women living in properties he managed.
According to court documents, the alleged misconduct extended far beyond inappropriate comments. Prosecutors say Williams exposed himself to tenants and demanded sex or sexual acts in exchange for housing-related benefits, including reduced rent or favorable treatment.
When tenants refused his advances, the lawsuit alleges Williams retaliated by initiating eviction proceedings or withholding necessary repairs, using housing security as leverage.
“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 Machelle Jindra, Special Agent in Charge with the HUD Office of Inspector General.
Under the terms of the settlement:
$315,000 will be distributed directly to victims
$10,000 will be paid as a civil penalty to the federal government
In addition to the financial settlement, Williams has been permanently banned from managing residential rental properties and is prohibited from contacting any victims identified in the case.
The Department of Justice emphasized that the agreement reflects a commitment to enforcing federal fair housing laws and protecting tenants from exploitation and abuse.