NEWPORT NEWS, Va. — A Hampton landlord who engaged in a scheme of racial harassment, fraud, and abuse targeting low-income minority tenants was sentenced Wednesday to 17 years in federal prison, according to the U.S. Attorney’s Office for the Eastern District of Virginia.
David L. Merryman, 59, owned dozens of rental properties in Hampton and Newport News, many in poor condition and located in low-income neighborhoods. From 2019 to January 2024, Merryman defrauded tenants by collecting large initial payments, such as security deposits and prepaid rent, under false pretenses. He then evicted tenants quickly to repeat the scheme, leaving them homeless and out of pocket.
Merryman also applied for COVID-19 rent relief funds using tenants’ names and forged signatures, often without their knowledge or consent. In some cases, he evicted tenants even after receiving rent relief funds on their behalf. Additionally, Merryman made false claims to the Department of Housing and Urban Development (HUD) to secure housing-assistance payments while failing to repair properties or meet HUD standards.
“Merryman deliberately targeted families of color with limited means and housing options,” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia. “Landlords have a responsibility under the law to uphold the housing rights and protect the dignity of the people to whom they rent. Mr. Merryman failed to uphold that responsibility and is paying a heavy price.”
Federal investigators revealed that Merryman’s crimes went beyond financial exploitation. He regularly harassed tenants with racist slurs, threats, and assaultive conduct, interfering with their right to housing and employment free from discrimination.
For instance, in 2019, Merryman threatened one tenant, L.G., by saying he would turn her and her children into “potting soil.” He intimidated another tenant, E.P., by evicting her despite obtaining $15,100 in rent relief funds under her name without her consent. E.P. lost all her belongings when Merryman sent a crew to remove her items and tow her car while she was hospitalized.
“Merryman specifically sought to rent his derelict properties to vulnerable minority tenants, and then subjected them to abhorrent racial discrimination,” said Rae Oliver Davis, HUD’s Inspector General.
Merryman also used threats against a concrete contractor, E.S., who had obtained a protective order against him. In one instance, Merryman appeared at a jobsite to intimidate E.S. and his team after repeated threats.
“Merryman used his position of power as a landlord and his tenants’ economic vulnerability to make a profit,” said Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office.
Merryman was convicted of wire fraud, aggravated identity theft, and race-based interference with housing and employment. His 17-year sentence aims to bring justice to the many victims of his calculated and abusive actions.