Harmeet K. Dhillon, Assistant Attorney General for the Civil Rights Division, U.S. Department of Justice | Official Website
The Justice Department has filed a lawsuit against Thomas Ray Kelso, the former owner and manager of Briarwood Apartments in Searcy, Arkansas, and Avatar Investments LLC, the company that owned the property during Kelso’s management. The suit alleges that Kelso engaged in sexual harassment and retaliation against female tenants over a period beginning in 2001 until his arrest in 2023 and subsequent conviction for federal sex trafficking charges in 2025.
According to the complaint filed in the U.S. District Court for the Eastern District of Arkansas, Kelso is accused of making repeated unwelcome sexual comments to female tenants, touching them without permission, requesting sexual contact, offering reduced or free rent in exchange for sexual acts, and retaliating against those who refused by threatening to cut off electricity or denying access to laundry facilities.
“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 stated: “This defendant intentionally lured and threatened vulnerable victims, forcing them to perform sexual acts in exchange for some of 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 for his reprehensible acts, the housing provider, Avatar Investments, LLC, should also be held accountable for its total lack of oversight of its property.”
The Justice Department is seeking monetary damages for those harmed by the alleged harassment, civil penalties, and a court order prohibiting future discrimination.
Individuals who believe they have experienced sexual harassment or other forms of housing discrimination are encouraged to contact the Justice Department’s Housing Discrimination Tip Line at 1-800-896-7743 or submit a report online. Additional information about relevant laws can be found at www.justice.gov/crt.
The lawsuit is part of the department's Sexual Harassment in Housing Initiative launched in October 2017. Since then, the initiative has resulted in 51 lawsuits alleging sexual harassment in housing settings and nearly $16.2 million recovered for victims.
