MOUNT LAUREL, NJ – JAG Management Company LLC (JAG) will pay $61,581 to settle allegations that it violated the Servicemembers Civil Relief Act (SCRA) by imposing illegal termination fees on at least nine servicemembers. These servicemembers had exercised their SCRA rights to end their leases upon receiving qualifying military orders.
Assistant Attorney General Kristen Clarke said the settlement underscores the Justice Department’s commitment to protecting servicemembers’ rights. U.S. Attorney Philip R. Sellinger noted the agreement ensures compensation for those allegedly unlawfully charged early termination fees.
The complaint, filed in U.S. District Court for the District of New Jersey, centered on Coast Guard Lieutenant Daniel Pereira, who was charged a $2,100 rent concession repayment after terminating his lease due to a transfer. Despite providing legal justification, JAG reported the debt to credit agencies, damaging Lt. Pereira’s credit score. At least eight other servicemembers faced similar issues.
Under the proposed consent order, subject to court approval, JAG must pay $41,581 in damages to the affected servicemembers and a $20,000 civil penalty to the federal government. JAG will also implement SCRA-compliant policies and training.
The case was investigated after a referral from the Justice Department’s Servicemembers and Veterans Initiative. For more information on SCRA enforcement, visit www.servicemembers.gov.