- Office of the Attorney General
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Sabrina Zafar , Deputy Press Secretary
BOSTON — Attorney General Andrea Joy Campbell today announced that her office has reached a $10 million settlement, via a proposed consent judgment, with New Jersey-based real estate company Schweb Partners LLC, its principals Jacques Schmidt and Abraham Weber, and multiple related entities (collectively, “Schweb”), who formerly owned and operated 62 majority low-income apartment buildings in Springfield known as “Springfield Gardens.” If approved by the court, the settlement will resolve allegations that the former landlord pervasively and systematically violated various state consumer protection and landlord-tenant laws, leading to unsafe, uninhabitable, and unlawful living conditions that impacted over one thousand tenants.
As part of the proposed settlement, Schweb will pay $2.5 million to the Commonwealth and forgive $7.5 million in alleged unpaid rent for impacted tenants, resulting in a total of $10 million in consumer relief. Additionally, Schweb will be prohibited from owning or managing real estate properties in Massachusetts.
“Landlords who operate in Massachusetts have a legal obligation to ensure their tenants are living in safe and sanitary housing. When those obligations are violated, it doesn’t just break our laws, it unfairly traumatizes our residents who are often led to live in uninhabitable conditions or be uprooted from their homes,” said AG Campbell. “I am proud to announce this settlement, which will provide meaningful relief for tenants.”
Between 2020 and 2024, Schweb purchased and operated the 62 “Springfield Gardens” apartment buildings and quickly became one of Springfield’s largest landlords, renting to nearly 1,300 tenants.
Subject to court approval, the proposed settlement will resolve the AGO’s allegations that throughout its ownership of the “Springfield Gardens” apartments, Schweb knowingly and persistently neglected to address widespread unsafe and unsanitary conditions across its 62 properties, often failing to meet basic habitability standards under the State Sanitary Code.
According to the AGO, Schweb regularly failed to make or improperly delayed adequate repairs in response to tenant reports regarding unsafe and unsanitary conditions – including persistent water leaks, mold, collapsed ceilings, pest infestations, lack of heat and hot water, unsecure exterior doors, fire safety concerns, and other issues often persisting for weeks, months, or even years. The AGO asserts that throughout the duration of its ownership, Schweb received at least 26,000 tenant complaints regarding such conditions across its properties, many of which were ignored, inadequately addressed, or improperly delayed.
The AGO asserted that in many instances, the unaddressed conditions led to the landlord being cited and sued by the City of Springfield for various building code violations; tenant units and entire apartment buildings being condemned and deemed uninhabitable by the City; tenants’ housing vouchers being terminated by housing authorities due to the conditions of the units; and multiple fires that displaced tenants. The AGO further asserted that despite multiple court orders related to enforcement actions brought by the City, Schweb still regularly failed to address many of the violations it was cited for.
Despite its knowledge of the widespread unsafe and unsanitary conditions, the AGO alleged that Schweb continued leasing units with such conditions, continued disregarding tenant repair requests, and continued collecting rental payments from tenants. The AGO claimed that this conduct violated state laws that require landlords to provide tenants with safe and sanitary living conditions.
Additionally, the AGO alleged that Schweb regularly failed to comply with state laws pertaining to the maintenance of tenant security deposits, including by failing to keep tenants’ security deposits in separate, interest-bearing accounts, as legally required. The AGO asserted that Schweb unlawfully misappropriated tenant security deposits into its own accounts to cover its operating expenses. Furthermore, the AGO alleged that Schweb often failed to return security deposits within 30 days of tenants moving out, made improper deductions from security deposits, and failed to provide an itemized list of damages for any deductions it made.
The AGO detailed these and other allegations in a complaint, available here. The proposed consent judgment, which will resolve the complaint if approved by the court, was filed in Suffolk County Superior Court, and may be viewed in its entirety here.
This matter was handled by Assistant Attorneys General Daniel Bahls, Ellen Peterson, and Richard M. Dohoney, Paralegals Chiara McNally, Sixiao Yu, and Aidan Goldberg, Division Chief Yael Shavit, and Deputy Division Chief Michael Turi, all of the AGO’s Consumer Protection Division, with assistance from Civil Investigator Melissa Casella of the AGO’s Civil Investigations Division. The Consumer Protection Division began its investigation of Schweb after the AGO’s Consumer Advocacy and Response Division received multiple complaints from “Springfield Gardens” tenants regarding the unlawful conditions.
This matter is representative of AG Campbell’s commitment to advancing economic opportunity and consumer justice for all and ensuring access to safe and affordable housing. Earlier this year, AG Campbell filed a nation-leading state enforcement action against a home equity investment company, alleging violations of the state’s consumer protection and mortgage laws. Additionally, last fall, AG Campbell reached a precedent-setting settlement with a servicer of “zombie second mortgages,” resolving allegations that the company violated the state’s consumer protection laws by improperly attempting to collect old mortgage debts.
Consumers who believe they have been subjected to an unfair or deceptive business practice, including by a landlord, may file a consumer complaint with the AGO online by visiting mass.gov/ago/consumercomplaint.
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