NEWARK, NJ – JAG Management Company LLC has agreed to pay $61,581 to settle allegations that it violated the Servicemembers Civil Relief Act (SCRA), as announced by the U.S. Attorney’s Office for the District of New Jersey and the Department of Justice’s Civil Rights Division. The company was accused of imposing illegal termination fees on at least nine servicemembers who had ended their leases due to military orders.
The servicemembers, residents of the Jefferson Mount Laurel apartment complex in Mount Laurel, New Jersey, faced termination fees as high as $2,750 each. The complaint in the U.S. District Court for the District of New Jersey cited Coast Guard Lieutenant Daniel Pereira, who tried to terminate his lease after receiving a transfer order. Despite providing timely written notice and supporting documents, Lt. Pereira later found that JAG had demanded repayment of a $2,100 rent concession and reported the debt to credit agencies, affecting his credit score.
Under the proposed consent order, subject to court approval, JAG will pay $41,581 in damages to the nine servicemembers and a $20,000 civil penalty to the federal government. JAG must also institute new policies to ensure compliance with the SCRA, train its employees on SCRA protections, and report future SCRA-related complaints to the federal government.
The case was investigated by the U.S. Attorney’s Office for the District of New Jersey and the Civil Rights Division’s Housing and Civil Enforcement Section, following a referral from the Justice Department’s Servicemembers and Veterans Initiative.