UNITED STATES DISTRICT COURT 
 DISTRICT OF SOUTH DAKOTA 
 SOUTHERN DIVISION 


UNITED STATES OF AMERICA, Plaintiff, v.
TK Properties, L.L.C., Scott Terveen, Ann Wagner, and Corey Anderson

Case No.: ()q-YI53
COMPLAINT

Defendants.

The United States of America ("United States") alleges as follows:

NATURE OF THE ACTION 1. .This action is brought by the United States to enforce Title VIII of the Civil Rights Act of 1968, as amended by the Fair Housing Amendments Act of 1988 ("Fair Housing Act"), 42 U.S.C. §§ 3601-3631. It is brought on behalf of: Michelle Chevalier and her thr.ee minor children, B.W., D.W., and R.H; Charlotte and Untoma Gadsden and their three minor children, LW., J.G., and D.G.; and Jenny Johnson, and her two minor children, T.J. and C.H., pursuant to 42U.S.C. §§ 3612(0) and 3614(a).
JURISDICTION AND VENUE 2. This Court has jurisdiction over this action pursuant to 28 U.S.C. § 1345, 42 U.S.C. § 3612(0) and 42 U.S.C. § 3614(a). 3. Venue is proper in this District under 28 U.S.C.§ 1391(b) because Defendants reside there and because a substantial part of the events or omissions giving rise to the United States' claims occurred there.

PARTIES 4. TK Properties, L.L.C. ("TK Properties") is a limited liability corporation organized under the laws ofSouth Dakota. From November 2003 until July 2009, TK Properties owned Lakeport Village Apartments ("Lakeport Village") in Sioux Falls, South Dakota. Scott Terveen, Michael Terveen, James Terveen and Ken, Kraft are member-managers ofTK Properties and share equally in the profits and losses of the corporation. S. Scott Terveen oversaw the day-to-day operation of Lakeport Village and 
 supervised the on-site managers. 
 6. At all times relevant to this case, Defendants Corey Anderson and Ann Wagner were the on-site'property manag~rs of Lakeport Village.
FACTUAL ALLEGATIONS 7. Lakeport Village is a 48-unit apartment complex that is comprised of three buildings, each with 16 units. Those units are "dwellings" within the meaning of the Fair . Housing Act, 42 U.S.C. § 3602(b). 8. Michelle Chevalier lived at Lakeport Village with her three minor children, 
 R.W., D.W., and R.H., from approximately June 2008 until May 2009. 
 9. Charlotte and Untoma Gadsden lived at Lakrport Village with their three minor children, LW., J.G., D.G., and their adult son Brandon Williams, from approximately September 2006 until June 2009. 10. Jenny Johnson lived at Lakeport Village with her two minor children, T.J. and C.H., from 2001 until July 2009. 11. On or around December 1,2008, TK Properties hired Ann Wagner and Corey
2

Anderson as on-site property managers. 12. On numerous occasions and in the presence of TK Properties' principals,
Anderson and Wagner used the word "nigger" to refer to black tenants at Lakeport Village, including, inter alia, Untoma and Charlotte Gadsden and their children.
13. On or around January 5, 2009, Michelle Chevalier, a white tenant at Lakeport Village, complained to Wagner about noise coming from the Gadsdens' apartment. Chevalier and Wagner went upstairs to speak to the Gadsdens. Charlotte Gadsden explained to Wagner that her husband Untoma had just returned from the hospital and that the noise had been the result of his dialysis machine falling to the floor. Wagner nevertheless yelled, "that's it, you're done, you're out of here, I've had enough," or words to that effect.
14. Following this confrontation, Wagner urged Chevalier to file a false police report stating that Charlotte and Untoma Gadsden's 17-year old son, I.G., had attacked Chevalier. . Chevalier refused to do so. Wagner nevertheless stated she would file such a report, and told Chevalier that she needed her help in evicting the Gadsdens, whom she referred to as "nigger" tenants. When the police arrived, Chevalier denied that she had been threatened by LG. and therefore no charges were filed.
15. Anderson told Chevalier that, with regard to the maintenance requests of African· Americans, "them fucking niggers can wait, I'll get to them when I get to them," or words to that effect. Anderson made the comment in the presence of Chevalier's children.
16. On or about February 11,2009, Anderson called the Sioux Falls Police Depruiment and falsely reported that lG., the Gadsdens' 15-year old son, was attempting to steal change from the apartment complex's laundry machine. Scott Terveen insisted that charges be
3 


filed. The charges were 'later dismissed. 17. On numerous occasions, white tenant Johnson heard Anderson and Wagner use
the word "nigger" to describe black tenants, including the Gadsdens. On or about February 19, 2009, white tenant Jelmy Johnson told another white tenant that she believed Anderson and Wagner were racist. Anderson, who learned of Johnson's allegations, responded by sending Johnson a text message that said, "Who in the hell do u think u r ifu want 2 bitch about me and b nosy u know where I live." Anderson also told another tenant that he would "punch [Johnson] in the mouth to shut her up," or words to that effect. The tenant told Johnson about Anderson's threat.
18. Following Anderson's text message and threat of assault, Wagner and Johnson saw each other on the balconies oftheir respective units. Wagner yelled, "Do you know the difference between a black person and a nigger? ..They're niggers. They're niggers upstairs in 306," or words to that effect, referring to the Gadsden's unit.
19. On February 20, 2009, Chevalier, Charlotte Gadsden, Untoma Gadsden and Johnson went to the Sioux Falls Housing and Redevelopment Commission ("Housing Authority") to complain about the discriminatory conduct of Anderson and Wagner. Anderson and Wagner saw them leave the property.
20. Later that day, the Gadsdens and Johnson returned to their apartments to find that they and other tenants on their floor did not have heat.
21. The following day, on February 21,2009, Wagner sent Chevalier a text message asking, "is it true you were with Jen [Tenant Johnson] yesterday at housing [Sioux Falls Housing and Redevelopment Commission]. we have never done anything 2 u or your family-y r u against
4 


us?" 22. On February 22, 2009, Johnson received a voice mail message from Wagner in
which she yelled vulgarities and stated that she would use "every ounce in my body" to "take you out of here." Jolmson felt threatened by the message and called the police the following day.
23. Defendants TK Properties and Scott Terveen knew about Defendant Anderson and Wagner's discriminatory conduct, but failed to take corrective action. In February 2009, Johnson met with Michael Terveen to complain about Anderson and Wagner's discriminatory conduct. Michael Terveen relayed Johnson's complaints to Scott Terveen.
24. Despite these complaints, Defendants TK Properties and Scott Terveen failed to curtail Wagner and Anderson's authority over the management of the complex and allowed them to continue on as managers. Corey Anderson and Ann Wagner continued to live at the property rent-free and continued to serve as managers of the property until at least May 2009.
25. Defendants created a racially hostile housing environment for the Gadsdens, the Chevaliers, and the Johnsons, and materially altered the terms and conditions of their housing on the basis of race. As a result of the defendant's racially discriminatory and retaliatory conduct, the Chevalier family, the Gadsden family and the Johnson family moved out of Lakeport Village Apatiments.
26. Defendants Scott Terveen and TK Properties, L.L.C. are liable for the abovedescribed discriminatory conduct of their agents, Defendants Ann Wagner and Corey Anderson.
27. On February 26, 2009, Charlotte Gadsden, Untoma Gadsden, Chevalier, and Johnson, on behalf of themselves and their minor children, filed three discrimination complaints with the U.S. Department of Bousing and Urban Development ("BUD"), pursuant to 42 U.S.C. §
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36l0(a). 28. Pursuant to 42 U.S.C. § 36l0(a) and (b), the Secretary ofHUD investigated
these complaints, attempted conciliation without success, and prepared final investigative reports. Based on the information gathered in the course of this investigation, the Secretary, pursuant to 42 U.S.C. § 36l0(g), determined that reasonable cause exists to believe that Defendants had engaged in illegal discriminatory housing practices in violation of the Fair Housing Act. Accordingly, on August 31,2009, pursuant to 42 U.S.C. § 3610(g)(2)(A), the Secretary issued a Determination of Reasonable Cause and Charge of Discrimination against Defendants.
29. On September 15,2009, Charlotte Gadsden, Untoma Gadsden, Chevalier, and Johnson timely elected to have these charges resolved in a federal civil action, pursuant to 42 . U.S.C. § 3612(a).
30. The Secretary ofHUD subsequently authorized the Attorney General to file this action on behalf of the HUD complainants, pursuant to 42 U.S.C. § 3612(0).
FIRST CLAIM FOR RELIEF 31. Plaintiff re-alleges and incorporates by reference the allegations set forth 
 in paragraphs 1-30, supra. 
 32. By the actions and statements referred to in the foregoing paragraphs, Defendants have:
(a) Discriminated in the terms, conditions or privileges of the sale or rental of a dwelling, or in the provision of services or facilities in connection therewith, on the basis ofrace, in violation of 42 U.S.C. § 3604(b);
6

(b) Made statements with respect to the rental of a dwelling that indicated a preference, limitation or discrimination based on race, in violation of 42 U.S.C. § 3604(c); and
(c) Coerced, intimidated, threatened or interfered with persons in the exercise or enjoyment of, or on account of their having exercised or enjoyed, their rights under the Fair Housing Act, in violation of 42 U.S.C. § 3617.
33. Charlotte Gadsden, Untoma Gadsden,iChevalier, Johnson, and their children, have suffered damages as a result of Defendants' violations of 42 U:S.C. §§ 3604(b), (c) and and 42 U.S.C. § 3617 and are "aggrieved persons" pursuant to 42 U.S.C. § 3602(i).
\
34. Defendants' actions, as set forth above, were intentional, willful and/or taken in reckless disregard for the rights of others.
SECOND CLAIM FOR RELIEF 35. Plaintiffre-alleges and incorporates by reference the allegations set forth in paragraphs 1-34, supra. 36. . Defendants' conduct and statements, described above, constitute:
(a) A pattern or practice of resistance to the full enjoyment of rights granted by the Fair Housing Act, 42 U.S.C. §§ 3604(b), 3604(c) and 3617, in violation of 42 U.S.C. § 3614(a); or
(b) A denial to a group of persons of rights granted by the Fair Housing Act, 42 U.S.C. §§ 3604(b), 3604(c) and 3617, which raises an issue of general public importance, in violation of 42 U.S.C. § 3614(a).
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33. In addition to Charlotte Gadsden, Untoma Gadsden, Chevalier, Johnson, and their minor children, there may be other victims of Defendants' discriminatory actions and practices 
 who are "aggrieved persons" as defined in 42 U.S.C. § 3602(i). 
 WHEREFORE, the United States prays that this Court enter an order that: 

1. Declares that Defendants' actions, policies and practices, as alleged herein, violate the Fair Housing Act;
2. Declares that Defendants have engaged in a pattern or practice of discrimination in violation of the Fair Housing Act, or have denied rights guaranteed under the.Fair Housing Act to a group of persons, which denial raises an issue of general public importance;
3. Enjoins Defendants, their agents, employees and successors, and all other persons in active concert or participation with them, from:
(a) discriminating i~ the terms, conditions, or privileges of sale or rental of a dwelling, or in the provision of services or facilities in connection therewith, on the basis of race;
(b) stating any preference, limitation or discrimination on the basis of race, ; and
(c) failing or refusing to take such steps as may be necessary to prevent the recurrence of any discriminatory conduct in the future and to eliminate, to the extent practicable, the effects of Defendants' unlawful housing practices;
4. Awards monetary damages, pursuant to 42 U.S.C. §§ 3612(0)(3), 3613(c)(l), and 3614(d)(1)(B) to all persons harmed by Defendants' discriminatory practices on the basis of race;
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and

5. Assesses a civil penalty against Defendants, pursuant to 42 U.S.C.

§ 3614(d)(1)(C) and 28 C.F.R. § 85.3(b)(3) to vindicate the public interest.

The United States further prays for such additional relief as the intere~ts ofjustice may

require.

Dated: October '\.5 ,2009.

ERIC HOLDER Attorney General

DENNIS R. HOLMES Acting UI1ited States Attorney

/\
LA--

[~~

THOMAS E. PEREZ"

Assistant Attorney General

Civil Rights Division

~iLR~~ 2w~-IJ.~~~ , . .-" ". "

t::~' -) STEVEN H. ROSENBAUM

7lie 


l·\"S\.T:E;"P;LH:AiLNi:1iEIl.tlBJmEtNeQG-~FLOatR~sD'Attorney

I

ChI' ef, H ous'mg and C'IVl'1


325 South First Avenue

Enforcement Section

Suite 300

Civil Rights Division

Sioux Falls, SD 57104

~

Phone: (605) 330-4400~.

Fax: (605) 330-4410

~

TIMOT ,ORAN

Deputy Chief

MAXLAPERTOSA

Attorney

Housing and Civil Enforcement Section

Civil Rights Division

U.S. Department of Justice

950 Pennsylvania Avenue NW

Northwestern Building, 7th Floor

Washington, D.C. 20530

Phone: (202) 353-1077

Fax: (202) 514-1116

9 


 
 Case 4:09-cv-04153-KES Document 29 Filed 12/21/10 Page 1 of 23 PageID #: 149

UNITED STATES DISTRICT COURT DISTRICT OF SOUTH DAKOTA SOUTHERN DIVISION

UNITED STATES OF AMERICA,

Plaintiff,

Case No.: 09-4153-KES

v.
TK PROPERTIES, L.L.C., SCOTT TERVEEN, ANN WAGNER, AND COREY ANDERSON

CONSENT ORDER BETWEEN THE UNITED STATES AND DEFENDANTS TK PROPERTIES, L.L.C. AND SCOTT TERVEEN

Defendants.

I. INTRODUCTION 1. Plaintiff United States of America ("United States") initiated this action on October 15,
2009, on behalf of Charlotte and Untoma Gadsden and their three minor children, I.W., J.G., and D.G.; Michelle Chevalier and her three minor children, B.W., D.W., and R.H.; and Jenny Johnson' and her two minor children T.J. and C.H. (hereinafter "complainants") pursuant to the Fair Housing Act ("FHA), 42 U.S.C. §§ 3612(0) and 3614(a). 2. The complaint alleges that Defendants TK Properties, L.L.C., Scott Terveen, Corey Anderson and Ann Wagner discriminated against the complainants on the basis of race in the rental of dwellings at Lakeport Village Apartments Dakota (hereinafter "Lakeport Village."), located at 5801 West Christopher Place, Sioux Falls, South Dakota. The complaint also alleges that Defendants engaged in a pattern or practice of discrimination or a denial to a group of persons ofrights protected by the FHA and such denial raises an issue ofgeneral public importance.
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Case 4:09-cv-04153-KES Document 29 Filed 12/21/10 Page 2 of 23 PageID #: 150
3. Lakeport Village is a 48-unit apartment complex comprised of three buildings with 16 apartments each.
4. Defendants TK. Properties, L.L.C. and Scott Terveen owned and oversaw the management of Lakeport Village from March 2006 until July 2009.
5. Defendant Corey Anderson was the on-site maintenance person at Lakeport Village from
November I, 2008 until September 15,2009. 6. Defendant Ann Wagner was the on-site manager at Lakeport Village from December I,
2008 until at least May 2009.
n. THE UNITED STATES' ALLEGATIONS
The United States alleges the following facts: 7. Michelle Chevalier lived at Lakeport Village with her three minor children, RW., D.W.,
and R.H., during all times relevant to this action until May 2009. 8. Charlotte and Untoma Gadsden lived at Lakeport Village with their three minor children,
I.W., IG., D.G., and their adult son Brandon Williams, during all times relevant to this action until June 2009. 9. Jenny Johnson lived at Lakeport Village with her two minor children, T.J. and C.H., during all times relevant to this action until July 2009. 10. On nwnerous occasions, Anderson and Wagner used the word "nigger" to refer to black tenants at Lakeport Village, including, inter alia, Untoma and Charlotte Gadsden and their children. On at least one occasion, Anderson and Wagner used the word "nigger" in the presence of James Terveeri, one ofTK. Properties' principals. 11. On or around January 5,2009, Chevalier complained to Wagner about noise coming from the Gadsdens' apartment. Chevalier and Wagner went upstairs to speak to the Gadsdens.
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Case 4:09-cv-04153-KES Document 29 Filed 12/21/10 Page 3 of 23 PageID #: 151

Mrs. Gadsden explained to Wagner that her husband had just returned from the hospital

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~

and that the noise had been the result of his dialysis machine falling to the floor. Wagner

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!

nevertheless yelled, "That's it, you're done, you're out of here, I've had enough," or

I

i.

words to that effect.

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12. Following this confrontation, Wagner told Ghevalier she needed her help in evicting the Gadsdens, whom she referred to as "nigger" tenants. Wagner called the police and

I

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alleged that the Gadsdens' son, I.G., had attacked Chevalier. Chevalier denied that she

I

had been threatened by 1.G. and therefore no charges were filed.

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!,

13. Anderson told -Chevalier that, with regard to the maintenance requests of African

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Americans, "them fucking Diggers can wait, I'll get to them when I get to them,'"' or

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words to that effect. Anderson made the comment in the,presence of Chevalier's

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children.

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14. On or about February 11,2009, Anderson called the Sioux Falls Police Department and·

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falsely reported that J.G., the Gadsdens' IS-year old son, was attempting to steal change

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~

from the apaItment complex's laundry machine. The charges were later dismissed.

15. On numerous occasions, Johnson heard Anderson and Wagner use the word "nigger" to

describe black tenants, including the Gadsdens. On or about February 19,2009, Johnson

told another tenant that she believed Anderson and Wagner were racist. Anderson, who

learned of Johnson's allegation, responded by sending Johnson a text message that said,

"Who in the hell do u think u r if u want 2 bitch about me and b nosy u know where I

live." Anderson also told another tenant that he would "punch [Johnson] in the mouth to

shut her up," or words to that effect. The tenant told Johnson about Anderson's threat.

I

3

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Case 4:09-cv-04153-KES Document 29 Filed 12/21/10 Page 4 of 23 PageID #: 152
16. Following Anderson's text message and threat of assault, Wagner yelled at Johnson, "Do you know the difference betWeen a black person and a nigger? .... They're niggers. They're niggers upstairs in 306," or words to that effect, referring to the Gadsdens' apartment.
17. On February 20,2009, the Gadsdens, Chevalier and Johnson went to the Sioux Falls Housing and Redevelopment Commission ("Housing Authority") to complain about the discriminatory conduct of Anderson and Wagner. Anderson and Wagner saw them leave Lakeport Village.
18. Later that day, the Gadsdens and Johnson returned tO'their apartments to find that they and other tenants on their floor did not have heat.
19. The following day, on February 21, 2009, Wagner sent Chevalier a text message asking her if she had gone to the Housing Authority to complain about Anderson and Wagner. Wagner stated in her text message, "y r us against us?"
20. On February 22,2009, Johnson received a voice mail message from Wagner in which she yelled vulgarities and stated that she would use "every ounce in my body" to "take you· out of here." Johnson felt threatened by the message' and called the police the following day.
21. In February 2009, Johnson met with Michael Terveen to complain about Anderson and Wagner's discriminatory conduct. Michael Terveen relayed Johnson's complaints to Scott Terveen.
22. Anderson and Wagner continued to live at the property and Anderson continued to perform his functions as on-site maintenance person.
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Case 4:09-cv-04153-KES Document 29 Filed 12/21/10 Page 5 of 23 PageID #: 153
23. As a result of Defendants' conduct, the Chevalier family, the Gadsden family and the Johnson family moved out of Lakeport Village Apartments. Ill. ENTRY OF DEFAULT AGAINST WAGNER AND ANDERSON PURSUANT TO RULE 55
24. On July 21t 2010, the Court entered a judgment of default against Anderson and Wagner pursuant to Rule 55(b)(2) of the Federal Rules of Civil Procedure. By defaulting, Anderson and Wagner have admitted the allegations of the United States' complaint.! IV. SETTLEMENT OF CLAIMS AGAINST TK PROPERTIES AND SCOTT TERVEEN
25. Defendants TK. Properties and Terveen (hereinafter "Defendants")· admit the United States' allegations.
26. The United States and Defendants (together ''the parties") have agreed to the entry of this Consent Order (hereinafter "Order") to resolve the claims of the United States and avoid further litigation. Therefore, the parties consent to the entry of this Order. This Order does not resolve the United States' claims against Anderson and Wagner.
Accordingly, it is hereby ORDERED, ADJUDGED AND AGREED as follows: V. SCOPE AND TERMS OF TIlE CONSENT ORDER
27. The parties agree that the Court has subject matter jurisdiction over the claims in this civil action pursuant to 28 U.S.C. §§ 1331 and 1345, as well as 42 U.S.C. § 3612(0) and 42 U.S.C. § 3614(a). The parties further agree that the United States District Court for the District of South Dakota shall retain jurisdiction over this action for all purposes
1 See Andelo Iafrate ConstC.. L.L.C. v. Potashnick Constr., Inc., 370 F.3d 715, 722 (8th Cir. 2004) ("A default judgment entered by the court binds the party facing the default as having admitted all of the well pleaded allegations in the plaintiffs complaint.")
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Case 4:09-cv-04153-KES Document 29 Filed 12/21/10 Page 6 of 23 PageID #: 154
related to the enforcement of this Order throughout its term, after which time the case shall be dismissed with prejudice. 28. The provisions of this Order shall apply to Defendants, their agents, employees, successors, and all persons in active concert or participation with them. 29. Unless otherwise specified herein, the provisions of this Order apply to any residential rental property that is owned or operated by any of Defendants. A current and complete list ofthese properties is attached to this Order as Attachment A. 30. This Order is effective immediately upon its entry by the Court. For purposes ofthis Order, the phrases "date of this Order" and "effective date" shall refer to the date on which the Court enters the Order. VI. GENERAL INJUNCTION 31. Defendants, their agents, employees, successors, and all persons in active concert or participation with them, are hereby enjoined, with respect to the rental of dwellings, from:
a. Discriminating against any person in the terms, conditions, or privileges of the rental of a dwelling, or in the provision of services or facilities in connection therewith, because of race;
b. Making, printing, or publishing, or causing to be made, printed or published (whether verbally or in writing) any notice, statement, or advertisement, with respect to the rental of a dwelling, that indicates any preference, limitation or discrimination based on race, or any intention to make any such preference, limitation, or discrimination; or
c. Coercing, intimidating, threatening, or interfering with any person in the exercise or enjoyment of, or on account of his or her having exercised or 6

Case 4:09-cv-04153-KES Document 29 Filed 12/21/10 Page 7 of 23 PageID #: 155
enjoyed, or on account of his or her having aided or encouraged any other person in the exercise or enjoyment of, any right granted or protected by the Fair Housing Act, 42 U.S.C. §§ 3601 3631. VD. INJUNCTION AS TO THE IllRING OF ANDERSON AND WAGNER 32. Defendants are enjoined from employing or otherwise retaining Anderson and Wagner in connection with the management, operation, rental or sale of dwellings. VIII. NON-DISCRIMINATION POLICIES AND PROCEDURES 33. Defendants' responsibilities under this Order shall apply to each and every dwelling unit in which Defendants, or any of them, have an ownership, management, or other financial interest at any time during the pendency of this Order. A current list of such units is
/
attached as Attachment A. Defendants' signature to this Order shall serve to certify that this list is complete and accurate. 34. Defendants shall prepare and implement uniform, non-discriminatory policies and procedures regarding the rental of dwelling units that shall be applied equally to all applicants, whether actual or prospective, regardless ofrace. These policies and procedures shall be substantially similar to those contained in Attachment B. Within forty-five (45) days of the date of this Order, Defendants shall provide via first class mail, postage pre-paid, to the head of the household for each rental unit a notice attached hereto as Attachment B, describing Defendants' policy ofnondiscrimination (hereinafter ''Nondiscrimination Policies and Procedures"). Ix:. NOTICE TO PUBLIC OF NON-DISCRIMINATION POLICIES 35. Within thirty (30) days ofthe date of this Order, Defendants shall take the following steps to notify the public of their non-discrimination policies:
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Case 4:09-cv-04153-KES Document 29 Filed 12/21/10 Page 8 of 23 PageID #: 156
a. Defendants shall prominently post in each public and common use area of each property (including but not limited to the stairwells and laundry areas) a fair, housing sign no smaller than ten (l0) inches by fourteen (14) inches that indicates that all apartments are available for rent on a nondiscriminatory basis. A poster that comports with 24 C.F.R. Part 110 shall, satisfy this requirement.
b. Defendants shall include the words "Equal Housing Opportunity" and the fair housing logo in any advertising conducted by Defendants, their agents or employees. The words and logo shall be prominently placed and easily readable. For purposes of this Order, "advertising" shall include any statement made for the purpose of soliciting the rental of a dwelling, whether paid or unpaid, in newspapers, telephone directories, on the Internet, radio or television or other media broadcasts, or on billboards, signs, pamphlets, fliers, handouts, promotional literature, or any other written materials. Defendants are not required to advertise in any of these media; however, should Defendants so advertise, they must comply with this provision.
c. Defendants shall either provide the following written statement to rental applicants or include this statement in Defendants' standard rental application and rental agreement, if any: "We are an equal housing opportunity provider. We do not discriminate on the basis of race, color, sex, national origin, religion, disability or familial status, including having children under age 18." If included in the rental application and rental 8

Case 4:09-cv-04153-KES Document 29 Filed 12/21/10 Page 9 of 23 PageID #: 157
agreement, this statement shall be written using letters of equal or greater size to those used for the text of the body of the document. X. MANDATORY TRAINING 36. Within thirty (30) days of the date of this Order, Defendants shall provide a copy of this Order and the:: Non-discrimination Policies and Procedures referred to in Paragraph 34, supra, to any agents, employees or other individuals involved in showing, renting or managing any dwellings subject to this Order. Defendants shall secure a signed statement from each such individual acknowledging that he or she has received and read the Order and Non-discrimination Policies and Procedures, has had the opportunity to have questions answered, and agrees to abide by the relevant provisions of this Order and said policies and procedures. This statement shall be in the form of Attachment C. 37. During the term of this Order, within'five (5) days after each new agent, employee or individual becomes involved in the showing, rental or management of any dwelling unit subject to this Order, Defendants shall provide this individual with a copy of this Order and the Non-discrimination Policies and Procedures and shall secure the same signed • statement, in the form of Attachment C, from each agent or employee. 38. Within six months of the date of this Order, Defendants, including any agents or employees of Defendants involved in showing, renting or managing any dwellings subject to this Order, shall attend an in-person training on the Fair Housing Act, including but not limited to the Act's provisions related to race discrimination. The trainer or training entity shall be qualified to perform such training, independent ofDefendants or their counsel, and approved in advance by the United States. Defendants shall bear the cost of any expenses associated with this training. Defendants shall obtain from the trainer or training
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Case 4:09-cv-04153-KES Document 29 Filed 12/21/10 Page 10 of 23 PageID #: 158
entity certificates of attendance signed by each individual who attended the training. The certificates shall be in the form ofAttachment F. XI. REPORTING REQUIREMENTS 39. Within ninety (90) days ofthe date of this Orde,r, and every twelve (12) months thereafter for the duration of this Order, Defendants shall deliver to counsel for the United States a report containing information regarding Defendants' c,ompliance with this Order during the preceding reporting period, including but not limited to: a. A copy of the Non-Discrimination Policies and Procedures under Paragraph 34; b." Current photographs of notices posted under Paragraph 35(a); c. Copies of any advertising, as defined in Paragraph 35(b); d. A copy of the written statement required under Paragraph 35(c); e. Any signed employee statements under Paragraph 36; f. Certificates of attendance of fair housing training, pursuant to Paragraph 38.2 40. During the term of this Order, Defendants shall preserve all records that are the source of, contain, or relate to any information that is pertinent to Defendants' obligations under this Order, including any records required under this Order and rental applications, leases, rental roll ledgers and tenant correspondence, if any, as well as any records relating to the transfer of interest in dwelling units. Upon reasonable notice to Defendants, representatives ofthe United States shall be permitted to inspect and copy all such records
2 For purposes ofthis Decree, documents to be sent to counsel for the United States shall be addressed as follows: Chief, Housing and Civil Enforcement Section, Civil Rights Division, DJ 175-69-44, U.S. Department of Justice, 950 Pennsylvania Avenue NW - G Street, Washington, DC 20530, or otherwise directed by the United States. Iftransmission by facsimile to the United States is required, the following facsimile number should be used: (202) 514-1116.
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Case 4:09-cv-04153-KES Document 29 Filed 12/21/10 Page 11 of 23 PageID #: 159
at any and all reasonable times or, upon request by the United States, Defendants shall provide copies of such documents. 41. During the tenn ofthis Order, Defendants shall notify counsel for the United States and counsel for Plaintiff-Intervenors in writing within fifteen (15) days of receipt of any written or oral complaint against Defendants, or any of them. or any of their agents or employees, regarding discrimination in the rental of housing based on race. If the complaint is written, Defendants shall provide a copy ofit with the notification. The notification shall include the full details of the complaint, including the complainant's name. address and telephone number, if known. Defendants shall also promptly provid,e counsel for the United States with all infonnation Defendants obtain concerning any such complaint and shall infonn the United States of any resolution of such complaint within fifteen (15) days of said resolution. XD. ~ONETARY DAMAGES FOR AGGRIEVED PERSONS 42. Within two (2) business days of the date of this Order, Defendants shall pay a total of TWENTY-SIX THOUSAND DOLLARS ($26,000) in compensation for personal injury and emotional distress to the HUD complainants ($13,000 to Charlotte Gadsden3, $6,500 to Michelle Chevalier, and $6,500 to Jenny Johnson). 4 Prior to receiving such payment, Charlotte Gadsden and her three children, I.W., J.G., and D.G.; Michelle Chevalier and her three children, B.W., D.W., and R.H.; and Jenny Johnson and her two children TJ. and C.H. shall execute a written release of all claims, whether legal or equitable, against
3 This payment is compensation for the personal injury and emotional distress of Charlotte and Untoma Gadsden and their three children I.W., J.G., and D.G. Mr. Gadsden died intestate on October, 152010. 4 TK. Properties, L.L.C. will pay this amount on behalf of Defendants.
11

Case 4:09-cv-04153-KES Document 29 Filed 12/21/10 Page 12 of 23 PageID #: 160
Defendants arising out of the facts of this lawsuit. The release for Charlotte Gadsden, Michelle Chevalier and Jenny Johnson on behalf ofthemselves and their minor children shall be in the fonn of Attachment D. The release for Charlotte Gadsden's adult-child I.W. and Jenny Johnson's adult-child C.H., adults as of the filing date of this order, shall be in the fonn ofAttachment E. 43. In the event that Defendants prevail against their insurance company in an adjudicated action on either the duty to defend issue, the coverage issue, or both, Defendants shall pay to the United States seventy-five percent (75%) of the amount awarded to them within five business days of the receipt of any such award. The United States will distribute 50% of this amount to Charlotte and Untoma Gadsden, 25% of this amount to Michelle Chevalier, and 25% of this amount to Jenny Johnson. Such an award will not relieve Defendants of their obligations under this Order.
XllI. CIVILPENALTY 44. Within two (2) business days of the date of this Order, Defendants shall'pay a total of
FOUR THOUSAND DOLLARS ($4,000) to the United States as a civil penalty, pursuant to 42 U.S.C. § 3614(d)(1)(C). This payment shall be delivered to counsel for the United States in the fonn ofa cashier's check payable to "United States Treasury."s
XIV. ACQUISITION OF DWELLING UNITS
45. If, at any time during the tenn of this Order, Defendants, or any of them, acquire a direct or indirect ownership, management or other financial interest in any other rental dwelling unit (other than units occupied by Defendants), such unit shall become subject to this
5 TK. Properties, L.L.C. will pay this amount on behalf of Defendants. 12

Case 4:09-cv-04153-KES Document 29 Filed 12/21/10 Page 13 of 23 PageID #: 161
Order. Within thirty (30) days of acquiring such an interest, Defendants shall notify counsel for the United States of the nature of Defendants' interest in the dwelling or property and the address of the property. Defendants shall further provide a copy of the documents memorializing the transfer in interest and a copy of the lease(s) for any existing tenant(s).
xv. TRANSFER OF INTEREST IN COVERED DWELLING UNITS
46. If, at any time during the tenn of this Order, Defendants, or any of them, decide or intend to transfer the entirety of their direct or indirect ownership, management, or other financial interest in a rental dwelling unit to an unrelated party ("purchaser" or "transferee") in an anus-length transaction, Defendants shall do as follows: a. At least thirty (30) days prior to completion of the sale or transfer, the transferring Defendant(s) shall provide to counsel for the United States, by facsimile and first-class mail, written notice oftheir intent to sell or
\
otherwise transfer interest in the dwelling unites), containing each prospective transferee's name, address and telephone number; b. Within thirty (30) days following completion of the sale or other transfer, the transferring Defendant(s) shall provide to the United States by firstclass mail a copy of the documents memorializing the transfer in interest of the dwelling unites); c. Ifthe transferring Defendant(s) comply with parts (a) and (b), above, and thereby transfers all of that Defendant's ownership, management, or other financial interest in the dwelling unites) to the purchaser or other transferee, then that Defendant will thereafter be relieved ofobligations under
13

Case 4:09-cv-04153-KES Document 29 Filed 12/21/10 Page 14 of 23 PageID #: 162
Sections V - XI and XVI of this Order, but only with respect to the dwelling units in which all interest was so transferred. That Defendant shall otherwise remain liable for compliance with all sections of the Order and with respect to all other covered dwelling units. 47. If the proposed transfer of interest is not an arms-length transaction, then the transferring Defendant(s) is not relieved of his obligation to comply with each provision ofthe Order. XVI. DURATION, MODIFICATIONS AND REMEDIES FOR NONCOMPLIANCE 48. This Order shall be in effect for a period ofthree (3) years from its effective date. 49. The United States may move the Court to extend the period in which this Order is in effect
I
if Defendants violate one or more terms of the Order or in the interests ofjustice. 50. Any time limits for performance imposed by this Order may be extended by mutual
written agreement of the parties. 51. The parties to this Order shall endeavor in good faith to resolve informally any differences
regarding interpretation of and compliance with this Order prior to bringing such matters to the Court for resolution. However, in the event the United States contends that there has been a 'failure by Defendants, whether willful or otherwise, to perform in a timely manner any act required by this Order or otherwise to comply with any provision thereof, the United States may move this Court to impose any remedy authorized by law or equity, including, but not limited to, an Order requiring performance of such act or deeming such act to have been performed, and an award of any damages, costs, and attorney's fees which may have been occasioned by Defendants' violation or failure to perform.
14

Case 4:09-cv-04153-KES Document 29 Filed 12/21/10 Page 15 of 23 PageID #: 163

52. The parties agree that in the event that Defendants engage in any future violation of the Fair Housing Act, such violation shall constitute a "subsequent violation" pursuant to 42 U.S.C. § 3614(d).
53. All parties shall be responsible for their own attorney's fees and costs, except as provided in this Order.

IT IS SO ORDERED.
This~dayof ~.1

,2010

BY THE COURT:

~ C~.k1U42

.

E.SC IER

.

CHIEF JUDGE

15

Case 4:09-cv-04153-KES Document 29 Filed 12/21/10 Page 16 of 23 PageID #: 164

BRENDAN V. JOHNSON United States Attorney Civil Rights Division
JAN HOLMGREN STEPHANIE BENGFORD Assistant United States Attorney 325 South First Avenue Suite 300 Sioux Falls) SD 571 04 Phone: (605) 330-4400 Fax: (605) 334410

FOR THE UNITED STATES:
THOMAS E.. PEREZ Assistant Attorney General
~lL~
Chief TIMOTHY J. MORAN Deputy Chief NETA BORSHANSKY MAX LAPERTOSA Attorneys Housing and Civil Enforcement Section Civil Rights Division U.S. Department of Justice 950 Pennsylvania Avenue NW Northwestern Building, 7th Floor Washington, D.C. 20530 Phone: (202) 353-0261 Fax: (202) 514-1116 neta. borshansk.y@usdoj.gov

16

Case 4:09-cv-04153-KES Document 29 Filed 12/21/10 Page 17 of 23 PageID #: 165
DANIEL R.. FRITZ ERIKA L. STOESER Lynn, Jackson, Shultz & Lebrun, P.C. P.O. Box 2700 Sioux Falls, South Dakota
57101~3020
17

Case 4:09-cv-04153-KES Document 29 Filed 12/21/10 Page 18 of 23 PageID #: 166

Address
3505 W. 93rd St. Sioux Falls, SD 57104
3601 S. Larch Ave.
Sioux Falls, SD
5504 Park Knoll PI.
Sioux Falls, SD 57108

Attachment A List of Covered Dwelling Units
No. of Rental Units 4 12 1

18

Case 4:09-cv-04153-KES Document 29 Filed 12/21/10 Page 19 of 23 PageID #: 167
Attachment B
Nondiscrimination Policy
It is the policy ofTK Properties L.L.C. and Scott Terveen to comply with Fair Housing Act, Title VIII of the Civil Rights Act of 1968, as amended by the Fair Housing Amendments Act of 1988, 42 U.S.C. §§ 3601 et seq.~ by ensuring that apartments are available to all persons without regard to race, color, religion, national origin, disability, familial status (having children under age 18), or sex. This policy means that, among other things, TK Properties L.L.C., Scott Terveen, and all agents or employees with responsibility for renting, or managing any dwelling units must not discriminate in any aspect of the rental of dwellings against qualified applicants or tenants beGa,use ofrace, color, religion, national origin, disability, familial status, or sex. Such agents and employees may not:
a. Refuse to rent after the making of a bona fide offer, or refuse to negotiate for rental of, or otherwise make unavailable or deny, a dwelling to any person because of race, color, religion, national origin, disability, familial status, or sex;
b. Discriminate against any person in the terms, conditions, or privileges of rental of a dwelling, or in the provision of services or facilities in connection therewith, because of race, color, religion, national origin, disability, familial status, or sex;
c. Make, print, or publish, or cause to be made, printed, or published any notice, statement, or advertisement, with respect to the rental of a dwelling that indicates any preference, limitation, or discrimination based on race, color, religion, national origin, disability, familial status, or sex, or an intention to make any such preference, limitation, or discrimination; or
d. Coerce, intimidate, threaten, or interfere with any person in the exercise or enjoyment of, or on account of his or her having exercised or enjoyed, or on account of his or her having aided or encouraged any other person in the exercise or enjoyment of, any right granted or protected by the Fair Housing Act.
Any agent or employee who fails to comply with this non-discrimination policy will be subject to appropriate disciplinary action, which may include termination and/or eviction. Any action taken by an agent or employee that results in the unequal service, treatment or behavior to tenants on the basis of race, color, religion, national origin, disability, familial status, or sex, may constitute a violation of state and federal fair housing laws.
19

Case 4:09-cv-04153-KES Document 29 Filed 12/21/10 Page 20 of 23 PageID #: 168
Attachment C Employee/Agent Acknowledgment of Receiving and Reviewing Order
and Nondiscrimination Policies and Procedures I have received a copy of the Consent Order entered in United States v. TK Properties, et al., Civil Action No. 09-4153 (D.S.D.). I have also received a copy of my employer's Nondiscrimination Policies and Procedures. The Consent Order and the Nondiscrimination Policies and Procedures were explained to me by my employer, and all questions concerning these documents were answered. I have read and understood the Consent Order and the Nondiscrimination Policies and Procedures.
DATE EMPLOYEE/AGENT NAME (PRINT) EMPLOYEE/AGENT SIGNATURE
20

Case 4:09-cv-04153-KES Document 29 Filed 12/21/10 Page 21 of 23 PageID #: 169

Attachment D

Release

In consideration for the parties' agreement to the terms of the Consent Order entered in

United States v. TK Properties. et al., No. 09-cv-41S3 (D. S.D.), and Defendants TK Properties,

L.L.C. and Scott Terveen's payment to me of$

,pursuant to the Consent Order, I

hereby agree on behalf of myself and my minor children, effective upon receipt of payment, to

remise, release, and forever discharge any and all claims of any kind, nature or description

whatsoever, related to the facts at issue in the litigation referenced above, or in any way related to

that litigation, up to and including the date of execution of this release, that 1. or my minor

children may have against Defendants TKProperties, L.L.C and Scott Terveen and their agents,

employees, officers, heirs, executors, spouses, administrators, successors, assigns or owners.

I acknowledge and understand that by signing this Release and accepting this payment, I arn waiving any right to pursue my own legal action or my minor children's legal action based on the discrimination alleged by the United States in this action.

I also acknowledge that I have been informed that I may review the terms of this Release with an attorney of my choosing, and to the extent that I have not obtained legal advice, I voluntarily and knowingly waive my right to do so.

This Release constitutes the entire agreement between Defendants TK Properties, L.L.C. and Scott Terveen and me and my minor children, without exception or exclusion.

Signature

Printed Narne

Date

21

Case 4:09-cv-04153-KES Document 29 Filed 12/21/10 Page 22 of 23 PageID #: 170

Attachment E

Release

In consideration for the parties' agreement to the terms of the Consent Order entered in

United States v. TK Properties, et al., No. 09-cv-4153 (D. S.D.), and Defendants TK. Properties,

L.L.C. and Scott Terveen's payment to my parent

of$

, pursuant

to the Consent Order, I hereby agree on behalf of myself, effective upon receipt ofpayment, to

remise, release, and forever discharge any and all claims of any kind, nature or description

whatsoever, related to the facts at issue in the litigation referenced above, or in any way related to

that litigation, up to and including the date of execution of this release, that I may have against

Defendants TK Properties, L.L.C and Scott Terveen and their agents, employees, officers, heirs,

executors, spouses, administrators, successors, assigns or owners.

I acknowledge and understand that by signing this Release and accepting this payment, I am waiving any right to pursue my own legal action based on the discrimination alleged by the United States in this action.

I also acknowledge that I have been informed that I may review the terms of this Release with an attorney of my choosing, and to the extent that I have not obtained legal advice, I voluntarily and knowingly waive my right to do so.

This Release constitutes the entire agreement between Defendants TK Properties, L.L.C. and Scott Terveen and me, without exception or exclusion.

Signature

Printed Narne

Date

22

Case 4:09-cv-04153-KES Document 29 Filed 12/21/10 Page 23 of 23 PageID #: 171

Attachment F

Certificate of Attendance

I,

, hereby acknowledge that on

20 _,

I completed an inwperson training by

on the requirements ofthe Fair

Housing Act, 42 U.S.C. §§ 3601-19, in compliance with Consent Order enteredby the United

States District Court for the District of South Dakota in United States v. TK Properties. et al.,

Civil Action No. 09-4153 (D. S.D.).

I understand my obligation to not discriminate against any person in the terms, conditions or privileges ofrenting a dwelling because ofrace, color, religion, national origin, disability, familial status (having children under age 18), or sex.

I understand my obligation not to retaliate against any individual for exercising a right protected by the Fair Housing Act in violation of Section 818 ofthe Act.

I declare under penalty ofpeljury that the foregoing is true and correct.

Executed this _ _ _ day of_ _ _ _ _----:>, 20_,

Name

23

 
 Case 4:09-cv-04153-KES Document 31 Filed 03/09/11 Page 1 of 6 PageID #: 215

UNITED STATES DISTRICT COURT


DISTRICT OF SOUTH DAKOTA


SOUTHERN DIVISION


UNITED STATES OF AMERICA,
Plaintiff,
vs.
TK PROPERTIES, L.L.C.; SCOTT TERVEEN; ANN WAGNER; and COREY ANDERSON,
Defendants.

)

CIV. 09-4153-KES

)

)

)

)

ORDER AWARDING CIVIL

) PENALTIES AND INJUNCTIVE

)

RELIEF AGAINST

)

DEFENDANTS ANDERSON

)

AND WAGNER

)

)

)

On October 15, 2010, the United States filed a complaint on behalf of

Charlotte and Untoma Gadsden, Michelle Chevalier, and Jenny Johnson

and their minor children, alleging that defendants TK Properties, L.L.C.,

Scott Terveen, Corey Anderson, and Ann Wagner violated the Fair Housing

Act (“FHA”) by discriminating on the basis of race, 42 U.S.C. § 3612(o), and

that defendants’ conduct constitutes a pattern or practice of discrimination

or a denial to a group of persons of rights protected by the FHA and such

denial raises an issue of general public importance. 42 U.S.C. § 3614(a).

Defendants Anderson and Wagner failed to answer the United States’

complaint. Accordingly, on July 21, 2010, the court entered a default

Case 4:09-cv-04153-KES Document 31 Filed 03/09/11 Page 2 of 6 PageID #: 216
judgment against them as to their liability under the FHA. (Default J., Docket No. 21.)1
On January 11, 2010, the United States filed a Motion for an Order Awarding Civil Penalties and Injunctive Relief Against Defendants Anderson and Wagner. Anderson and Wagner have not responded. Having considered the motion and brief in support, the court finds that the following order is appropriate. It is
ORDERED, ADJUDGED, AND DECREED as follows: I. CIVIL PENALTY
1. Within thirty (30) days after the date of this order, defendant Anderson must issue a certified check or money order in the amount of Fifteen Thousand Dollars ($15,000) to the United States Treasury as a civil penalty, pursuant to 42 U.S.C. § 3614(d)(1)(C), to vindicate the public interest. Defendant Anderson must send this payment to counsel for the United States, via overnight mail, to: Chief: Housing and Civil Enforcement Section, Civil Rights Division, United States Department of Justice, 1800 G. Street, N.W., Washington, D.C. 20006.
2. Within thirty (30) days after the date of this Order, defendant Wagner must issue a certified check or money order in the amount of
1 The United States’ claims against defendants TK Properties L.L.C. and Scott Terveen were resolved by way of a consent order filed with the court on December 21, 2010. Docket No. 29.
2


Case 4:09-cv-04153-KES Document 31 Filed 03/09/11 Page 3 of 6 PageID #: 217
Fifteen Thousand Dollars ($15,000) to the United States Treasury as a civil penalty, pursuant to 42 U.S.C. § 3614(d)(1)(C), to vindicate the public interest. Defendant Wagner must send this payment to counsel for the United States, via overnight mail, to: Chief: Housing and Civil Enforcement Section, Civil Rights Division, United States Department of Justice, 1800 G. Street, N.W., Washington, D.C. 20006. II. INJUNCTIVE RELIEF
3. Defendant Anderson is hereby enjoined from: a. Discriminating against any person in the terms, conditions, or privileges of renting a dwelling unit, or in the provision of services or facilities in connection therewith, because of race; b. Making, printing, publishing, or causing to be made, printed, or published any notice, statement, or advertisement with respect to the rental of a dwelling unit that states any preference, limitation, or discrimination based on race; or c. Coercing, intimidating, threatening, or interfering with any person in the exercise or enjoyment of, or on account of a person having exercised or enjoyed, or on account of a person having aided and encouraged any other person in the exercise or enjoyment of, any right granted by 42 U.S.C. §§ 3603-3606.
3


Case 4:09-cv-04153-KES Document 31 Filed 03/09/11 Page 4 of 6 PageID #: 218
4. Defendant Anderson is hereby enjoined from operating, consulting, managing, staffing, participating in, working in (whether paid or unpaid), or otherwise having any involvement in the management, rental, or maintenance of any dwelling, as defined by the Fair Housing Act, 42 U.S.C. § 802(b).
5. Defendant Wagner is hereby enjoined from: a. Discriminating against any person in the terms, conditions, or privileges of renting a dwelling unit, or in the provision of services or facilities in connection therewith, because of race; b. Making, printing, publishing, or causing to be made, printed, or published any notice, statement, or advertisement with respect to the rental of a dwelling unit that states any preference, limitation, or discrimination based on race; or c. Coercing, intimidating, threatening, or interfering with any person in the exercise or enjoyment of, or on account of a person having exercised or enjoyed, or on account of a person having aided and encouraged any other person in the exercise or enjoyment of, any right granted by 42 U.S.C. §§ 3603-3606.
6. Defendant Wagner is hereby enjoined from operating, consulting, managing, staffing, participating in, working in (whether paid or unpaid), or otherwise having any involvement in the management, rental, or
4


Case 4:09-cv-04153-KES Document 31 Filed 03/09/11 Page 5 of 6 PageID #: 219
maintenance of any dwelling, as defined by the Fair Housing Act, 42 U.S.C. § 802(b). III. SCOPE AND DURATION OF CONSENT ORDER
7. Section I shall remain in effect until defendants Anderson and Wagner satisfy their respective civil penalty obligations under this order.
8. Section II shall remain in effect for three (3) years after the date of the entry of this order.
9. The court shall retain jurisdiction for the duration of this order to enforce its terms, after which time the case shall be dismissed with prejudice. The court may extend the duration of the order in the interests of justice. IV. REMEDIES FOR NON-COMPLIANCE
10. The parties will endeavor in good faith to resolve informally any differences regarding interpretation of and compliance with this order prior to bringing such matters to the court for resolution. But in the event the United States contends that there has been a failure by defendant Anderson or defendant Wagner, whether willful or otherwise, to perform in a timely manner any act required by this order or otherwise to act in conformance with any provision thereof, the United States may move this court to impose any remedy authorized by law or equity, including, but not limited to, an order requiring performance of such act or deeming such act to have been
5


Case 4:09-cv-04153-KES Document 31 Filed 03/09/11 Page 6 of 6 PageID #: 220 performed, and an award of any damages, costs, and reasonable attorneys’ fees that may have been occasioned by the violation or failure to perform.
Dated March 9, 2011. BY THE COURT:
/s/ Karen E. Schreier
KAREN E. SCHREIER CHIEF JUDGE
6


 
 Case: 4:09-cv-4153 As of: 11/15/2011 08:33 PM CST 1 of 4
U.S. District Court District of South Dakota (Southern Division) CIVIL DOCKET FOR CASE #: 4:09−cv−04153−KES

CLOSED

USA v TK Properties Assigned to: Chief Judge Karen E. Schreier Cause: 42:405 Fair Housing Act
Plaintiff United States of America

Date Filed: 10/15/2009 Date Terminated: 12/21/2010 Jury Demand: None Nature of Suit: 443 Civil Rights: Accomodations Jurisdiction: Federal Question
represented by Max P. Lapertosa U.S. Department of Justice 1800 G Street N.W. Washington, DC 20006 (202) 305−1077 Fax: (202) 514−1116 Email: max.lapertosa@usdoj.gov LEAD ATTORNEY ATTORNEY TO BE NOTICED
Neta Borshansky U.S. Department of Justice − Civil Rights Division Civil Rights Division 950 Pennsylvania Ave., N.W. G St., Northwestern Bldg., 7th Floor Washington, DC 20530 (202) 353−0261 Fax: (202) 514−1116 Email: neta.borshansky@usdoj.gov LEAD ATTORNEY ATTORNEY TO BE NOTICED
Stephanie Carlson Bengford U.S. Attorney's Office (Sioux Falls, SD) PO Box 2638 Sioux Falls, SD 57101−2638 357.2341 Fax: 330.4402 Email: Stephanie.Bengford@usdoj.gov LEAD ATTORNEY ATTORNEY TO BE NOTICED
Steven H. Rosenbaum U.S. Department of Justice − Civil Rights Division Civil Rights Division 950 Pennsylvania Ave., N.W. G St., Northwestern Bldg., 7th Floor Washington, DC 20530 (202)353−9331 Fax: (202)514−1116 LEAD ATTORNEY
Thomas E. Perez U.S. Department of Justice − Civil Rights Division Civil Rights Division 950 Pennsylvania Ave., N.W. G St., Northwestern Bldg., 7th Floor

Case: 4:09-cv-4153 As of: 11/15/2011 08:33 PM CST 2 of 4
Washington, DC 20530 (202) 514−4609 LEAD ATTORNEY
Timothy J. Moran U.S. Department of Justice − Civil Rights Division Civil Rights Division 950 Pennsylvania Ave., N.W. G St., Northwestern Bldg., 7th Floor Washington, DC 20530 (202)353−9331 Fax: (202)514−1116 LEAD ATTORNEY

V. Defendant TK Properties, L.L.C.
Defendant Scott Terveen
Defendant Ann Wagner Defendant Corey Anderson

represented by Daniel R. Fritz , II Lynn, Jackson, Shultz &Lebrun, P.C. PO Box 2700 Sioux Falls, SD 57101−2700 332−5999 Fax: 332−4249 Email: dfritz@lynnjackson.com LEAD ATTORNEY ATTORNEY TO BE NOTICED
Erika L. Stoeser Lynn, Jackson, Shultz &Lebrun, P.C. PO Box 2700 Sioux Falls, SD 57101−2700 (605) 332−5999 Fax: (605) 332−4249 Email: estoeser@lynnjackson.com ATTORNEY TO BE NOTICED
represented by Daniel R. Fritz , II (See above for address) LEAD ATTORNEY ATTORNEY TO BE NOTICED
Erika L. Stoeser (See above for address) ATTORNEY TO BE NOTICED

Date Filed 10/15/2009
10/15/2009

# Docket Text
Remark: Per discussion with Max Lapertosa, we DO NOT need to mail copies of any documents to Thomas Perez, Steven Rosenbaum, or Timothy J. Moran. (CMS) (Entered: 10/16/2009)
1 COMPLAINT, filed by United States of America.(CMS) (Entered: 10/16/2009)

Case: 4:09-cv-4153 As of: 11/15/2011 08:33 PM CST 3 of 4

10/15/2009 10/15/2009 10/15/2009 10/15/2009 10/15/2009 11/09/2009
11/09/2009 12/29/2009
12/29/2009
01/26/2010 02/08/2010 02/09/2010 05/14/2010 05/17/2010 07/08/2010
07/09/2010 07/12/2010 07/13/2010 07/13/2010

2 CIVIL COVER SHEET (CMS) (Entered: 10/16/2009)
3 Summons Issued as to Ann Wagner; handed two true copies to runner. (CMS) (Entered: 10/16/2009)
4 Summons Issued as to Corey Anderson; handed two true copies to runner. (CMS) (Entered: 10/16/2009)
5 Summons Issued as to Scott Terveen; handed two true copies to runner. (CMS) (Entered: 10/16/2009)
6 Summons Issued as to TK Properties, L.L.C.; handed two true copies to runner. (CMS) (Entered: 10/16/2009)
7 WAIVER OF SERVICE Returned Executed by United States of America. TK Properties, L.L.C. waiver sent on 10/20/2009, answer due 12/21/2009; Scott Terveen waiver sent on 10/20/2009, answer due 12/21/2009. (Lapertosa, Max) (Entered: 11/09/2009)
8 Separate ANSWER to 1 Complaint by TK Properties, L.L.C., Scott Terveen.(Fritz, Daniel) (Entered: 11/09/2009)
9 AFFIDAVIT of Service for Complaint/Summons served on Anderson, Corey on 11/18/2009, filed by United States of America., SUMMONS Returned Executed by United States of America. Corey Anderson served on 11/18/2009, answer due 12/9/2009. (Lapertosa, Max) (Entered: 12/29/2009)
10 AFFIDAVIT of Service for Complaint/Summons served on Wagner, Ann on 11/18/2009, filed by United States of America., SUMMONS Returned Executed by United States of America. Ann Wagner served on 11/18/2009, answer due 12/9/2009. (Lapertosa, Max) (Entered: 12/29/2009)
11 NOTICE of Appearance by Neta Borshansky on behalf of United States of America (Borshansky, Neta) (Entered: 01/26/2010)
12 FORM 52 REPORT of Parties Planning Meeting. (Fritz, Daniel) (Entered: 02/08/2010)
13 SCHEDULING ORDER: Discovery due by 9/24/2010. Motions due by 10/12/2010. Signed by Chief Judge Karen E. Schreier on 2/9/2010. (KC) (Entered: 02/09/2010)
14 Motion/ STIPULATION for Extension of Deadline by TK Properties, L.L.C., Scott Terveen. (Fritz, Daniel) Modified on 5/14/2010 to change to motion(SLW). (Entered: 05/14/2010)
15 ORDER granting 14 Motion to Extend Deadlines. Signed by Chief Judge Karen E. Schreier on 5/17/2010. (KC) (Entered: 05/17/2010)
16 APPLICATION for Entry of Default Judgment Against Defendants Anderson and Wagner by Plaintiff United States of America. (Attachments: # 1 Exhibit 1. Declaration of Neta Borshansky, # 2 Exhibit 2. 2010.01.07 Letter, # 3 Exhibit 3. 2010.03.02 Letter, # 4 Exhibit 4. 2010.03.19 Letter, # 5 Exhibit 5. 2010.04.21 Letter, # 6 Exhibit 6. Certificates of Military Status, # 7 Text of Proposed Order Proposed Entry of Default re Defendants Anderson and Wagner)(Borshansky, Neta) (Entered: 07/08/2010)
17 Clerk's ENTRY OF DEFAULT as to Corey Anderson, Ann Wagner (jh) (Entered: 07/09/2010)
18 CERTIFICATE of Service for Application for Entry of Default Judgment (Dkt. No. 16) by United States of America. (Borshansky, Neta) (Entered: 07/12/2010)
19 APPLICATION for Default Judgment Against Defendants Corey Anderson and Ann Wagner by Plaintiff United States of America. (Borshansky, Neta) (Entered: 07/13/2010)
Mediation set for 8/17/2010 09:30 AM in Sioux Falls Grand Jury Room before U.S.Magistrate Judge John E. Simko. (CG) (Entered: 07/13/2010)

Case: 4:09-cv-4153 As of: 11/15/2011 08:33 PM CST 4 of 4

07/13/2010 07/21/2010 07/29/2010 08/17/2010 10/05/2010 10/06/2010 11/10/2010 11/10/2010 12/20/2010 12/21/2010 01/11/2011
03/09/2011

20 MEDIATION Agreement signed by United States of America and Scott Terveen. (Borshansky, Neta) Modified on 7/14/2010 (DJP). (Entered: 07/13/2010)
21 DEFAULT JUDGMENT in favor of United States of America against Ann Wagner, Corey Anderson on the issue of LIABILITY for violations of the Fair Housing Act. Signed by Chief Judge Karen E. Schreier on 7/21/10. (SLW) (Entered: 07/21/2010)
22 Mail Returned as Undeliverable (Doc. 21) addressed to Ann Wagner at 209 North Dogwood Place, Sioux Falls, SD 57106 (DJP) (Entered: 07/30/2010)
23 Mediation held on 8/17/2010 before U.S.Magistrate Judge John E. Simko (parties successfully resolved their dispute). (Court Reporter FTR Ct#3) (CG) Oral minutes; sealed attachment (per chambers) added on 8/18/2010 (SLW). (Entered: 08/18/2010)
24 First MOTION to Extend Deadlines Motion to Amend the February 9, 2010 Scheduling Order by United States of America. (Attachments: # 1 Proposed Order)(Borshansky, Neta) (Entered: 10/05/2010)
25 ORDER granting 24 Motion to Extend Deadlines. Motions due by 11/12/2010. Signed by Chief Judge Karen E. Schreier on 10/06/2010. (KC) (Entered: 10/06/2010)
26 Joint MOTION to Extend Deadlines by United States of America. (Attachments: # 1 Text of Proposed Order)(Borshansky, Neta) (Entered: 11/10/2010)
27 ORDER granting 26 Motion to Extend Deadlines. Motions due by 1/11/2011. Signed by Chief Judge Karen E. Schreier on 11/10/2010. (KC) (Entered: 11/10/2010)
28 Joint MOTION Entry of Consent Order Between the United States and Defendants TK Properties, L.L.C. and Scott Terveen by United States of America. (Attachments: # 1 Text of Proposed Order)(Borshansky, Neta) (Entered: 12/20/2010)
29 CONSENT ORDER BETWEEN THE UNITED STATES AND DEFENDANTS TK PROPERTIES, L.L.C and Scott Terveen. Signed by Chief Judge Karen E. Schreier on 12/21/10. (DJP) (Entered: 12/21/2010)
30 MOTION for Order Awarding Civil Penalties and Injunctive Relief Against Defendants Anderson and Wagner by United States of America. (Attachments: # 1 Exhibit US v. Silva (Final Judgment), # 2 Exhibit US v. Sturdevant (Memorandum and Order), # 3 Exhibit US v. Veal (Order), # 4 Exhibit US v. Koch (Memorandum and Order), # 5 Exhibit US v. Wingo (Consent Decree), # 6 Exhibit US v. Mills (Consent Decree), # 7 Text of Proposed Order Order Awarding Civil Penalties and Injunctive Relief Against Defendants Anderson and Wagner)(Borshansky, Neta) (Entered: 01/11/2011)
31 ORDER granting 30 Motion for civil penalties and injunctive relief. Signed by Chief Judge Karen E. Schreier on 3/9/2011. (KC) (Entered: 03/09/2011)