A Virginia landlord who engaged in racist behavior towards his Black tenants and fraudulently used their identities to obtain additional COVID relief funds has been sentenced to nearly twenty years in prison.
David L. Merryman, 59, has been convicted and sentenced to 17 years in prison for committing wire fraud, aggravated identity theft, and engaging in race-based interference with housing and employment, as reported by Law & Crime. Merryman was the owner of over 60 rental properties located in Newport News and Hampton, which are predominantly inhabited by Black residents in coastal Virginia.
According to a press release from the Department of Justice (DOJ), Merry was the owner of 39 rental properties in Newport News and an additional 23 properties in Hampton. These properties were predominantly situated in low-income areas and were rented out to primarily Black tenants who faced limited credit and housing opportunities, leaving them with no choice but to reside in Merry’s properties. Unfortunately, the condition of these homes was appalling, with various problems such as damaged ceilings and walls, leaks, and infestations of rodents.
Between 2019 and January 2024, Merryman participated in a scheme that involved acquiring rent relief benefits that he did not qualify for and deceitfully obtaining substantial initial payments such as security deposits, prepaid rent, and other fees for rental properties that were in a state of disrepair, as stated by the DOJ. Merryman would then deceive potential tenants by offering longer lease terms but had the intention of evicting them swiftly to restart the fraudulent cycle.
“David Merryman deliberately targeted families of color with limited means and housing options,” said Jessica D. Aber, U.S. Attorney for the Easter District of Virginia. “Landlords have a responsibility under the law to uphold the housing rights and protect the human dignity of the people to whom they rent. Mr. Merryman failed to uphold that responsibility and is paying a heavy price for his racial discrimination and fraud.”
Merryman faced accusations of racially harassing Black tenants by using racial slurs. The Department of Justice (DOJ) stated that Merryman subjected his minority tenants to slurs, made comments about slavery, mocked them, issued death threats, and engaged in behavior that was physically aggressive based on their race. These actions violated the tenants’ rights to live and lease a home without being subjected to racially motivated harassment, threats, and force. Additionally, Merryman interfered with at least one victim’s ability to work in an environment free from racial threats and physical aggression.
“For years, David Merryman used his position of power as a landlord and his tenant’s economic vulnerability to make a profit,” said Brian Dugan, special agent in charge of the FBI’s Norfolk Field Office. “He not only sought out tenants with few housing options to rent but then continued to racially harass and subject them to unsuitable living conditions. His victims were oftentimes mothers or fathers who just wanted to keep a roof over their family’s heads. We’re thankful for today’s sentence, which showcases the serious nature of these types of offenses, as well as the FBI’s commitment to investigating the perpetrators of these crimes.”
Merryman deceived tenants by tricking them into giving him money and property with the false promise of improving conditions, even though he never had any intention of doing so.
“Merryman specifically sought to rent his derelict properties to vulnerable minority tenants and then subjected them to abhorrent racial discrimination and other abusive conduct,” said Rae Oliver Davis, inspector general for the U.S. Department of Housing and Urban Development. “His criminal actions were in repulsive disregard for both the law and well-being of his low-income tenants. Today’s sentencing stops his cycle of fraud and abuse and brings Mr. Merryman to justice.”
Merryman engaged in fraudulent activities during the COVID-19 pandemic by submitting fake rent relief applications. He unlawfully utilized his tenants’ personal information and forged their signatures without their consent.
According to the Department of Justice (DOJ), Merryman falsely represented the condition of his rental properties and his receipt of other payments that could duplicate federally funded rental assistance in order to receive housing assistance payments from the Department of Housing and Urban Development (HUD).
