The United States Department of Justice announced that it has filed a federal civil rights lawsuit against Thomas Ray Kelso, the former owner and manager of rental units formerly known as Briarwood Apartments in Searcy, Arkansas. The suit alleges two decades of sexual harassment, coercion, and retaliation against female tenants in violation of the Fair Housing Act. The property’s ownership group, Avatar Investments LLC, is also named for failing to prevent or address the misconduct.
Filed in the U.S. District Court for the Eastern District of Arkansas, the complaint asserts that Kelso repeatedly targeted female tenants as far back as 2001, continuing until his arrest in 2023 and his conviction on federal sex-trafficking charges in 2025. According to the DOJ, Kelso made unwelcome sexual comments, initiated unwanted physical contact, demanded sexual acts, offered reduced rent in exchange for sexual favors, and retaliated against tenants who refused—sometimes by threatening to cut their power or restrict laundry access.
“No one should have to endure sexual harassment to keep a roof over his or her head,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “This lawsuit reinforces the Justice Department’s commitment to holding landlords and housing providers accountable for illegally harassing and retaliating against tenants.”
U.S. Attorney Jonathan D. Ross for the Eastern District of Arkansas emphasized the severity of the allegations.
“This defendant intentionally lured and threatened vulnerable victims, forcing them to perform sexual acts in exchange for life’s essentials — shelter and electricity. He was rightfully sentenced to serve 20 years in federal prison. Just as Kelso continues to be held accountable, Avatar Investments LLC should also be held responsible for its lack of oversight.”
The lawsuit seeks monetary damages for victims, civil penalties, and a court order to prevent future discrimination.
The case is part of the Justice Department’s Sexual Harassment in Housing Initiative, launched in 2017 to combat abuse by landlords, property managers, maintenance workers, loan officers, and others in positions of housing authority. Since its launch, the DOJ has filed 51 lawsuits and secured nearly $16.2 million in relief for victims.
Anyone who has experienced sexual harassment or other forms of housing discrimination is encouraged to contact the Justice Department’s Housing Discrimination Tip Line at 1-800-896-7743 or file a report online via the DOJ website.
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