Attorney general’s office secures landmark settlement with discriminatory landlord

A Hampton Roads landlord previously sentenced to prison for discriminatory housing and employment practices will have to pay $2.25 million to the Office of the Attorney General of Virginia as part of a landmark settlement reached by the office.

Virginia Attorney General Jay Jones announced July 16 that the Office of Civil Rights reached the settlement in a fair housing case brought against David Merryman. Described in a press release from Jones’ office as “a notorious landlord in Newport News and Norfolk,” Merryman is serving a 17-year prison sentence for wire fraud, aggravated identity theft and race-based interference with housing and employment.

The settlement comes two years after Merryman’s sentencing. Per the U.S. Department of Justice, Merryman owned 62 rental properties in Newport News and Hampton, many of which were in poor condition in low-income neighborhoods and primarily rented to underprivileged Black tenants with limited alternatives.

The Department of Justice stated in 2024 that Merryman “engaged in a multifaceted scheme,” which included obtaining rent relief benefits that were not entitled to him and fraudulently obtaining large security deposits and prepaid rent payments. The department also stated that Merryman would tell tenants he would lease the rentals for long-term tenancy but intended to evict tenants as quickly as possible.

Merryman also obtained property and money from tenants under false pretenses. In one example cited by the Department of Justice, he “repeatedly made racially derogatory responses” to a tenant after they made requests for home repairs and threatened to turn the tenant and her children into “potting soil.”

Then-U.S. Attorney Jessica Aber said at the time that Merryman “deliberately targeted families of color with limited means and housing options.”

Under the terms of the settlement with Jones’ office, Merryman can never again be a landlord in Virginia and must sell his Virginia rental properties within one year. He also is required to work with the courts to eliminate millions of dollars of eviction filings and judgments from his past tenants’ records.

The $2.25 million settlement funds will be used to compensate tenants who were victims of Merryman’s actions.

“Our friends, neighbors, communities and families have the right to be treated with respect and dignity throughout the housing process, as guaranteed by the Virginia Fair Housing Law and the Fair Housing Act,” Jones said in a statement. “Anyone found in violation of these laws will be held accountable by this office and justice will be achieved for tenants who face discrimination.”

Deputy Attorney General Helen Hardiman and Section Chief for the Office of Civil Rights Palmer Heenan first began working on the case under former Attorney General Mark Herring before returning to the attorney general’s office under Jones.

“Today’s settlement holds Merryman accountable, requiring him to admit that he discriminated against his tenants, abused his tenants, and called them horrific racist, sexist, and homophobic slurs,” Heenan said in a news release, adding that “the extent of the trauma and abuse his tenants faced cannot be understated.”

“I still viscerally remember the horror stories of Merryman’s tenants who we interviewed when we first opened this case in 2021,” Hardiman said. “I hope they finally feel vindicated.”