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Realty owner, 17 others indicted in federal drug case
As tenants worry about their safety, stability and money, advocates say a federal drug conspiracy case involving a Milwaukee landlord is part of a bigger issue with nuisance properties in the city.
MILWAUKEE - As tenants worry about their safety, stability and money, advocates say a federal drug conspiracy case involving a Milwaukee landlord is part of a bigger issue with nuisance properties in the city.
Landlord charged
The backstory:
A federal grand jury indicted 18 people, including S2 Real Estate owner Sam Stair, this week.
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Prosecutors said Stair, who is in jail while waiting for his trial, rented properties to drug dealers for kickbacks and tipped off tenants and dealers about law enforcement while collecting higher rent, laundering the money through his business. Court filings said he owns roughly 150 rental properties, mostly on Milwaukee's south side.
In April, agents targeted 12 properties – including Stair's home and business – as part of the federal case. They also seized bank accounts that Stair and S2 Real Estate controlled.
Properties rented to drug dealers, Milwaukee-area landlord accused
Prosecutors accuse a Milwaukee-area landlord of renting properties to drug dealers in exchange for kickbacks and tipping off tenants to law enforcement.
New management
What they're saying:
Smart Asset Realty & Management, a Waukesha-based company, has since taken over managing some, if not all, of S2 Real Estate's portfolio. Tenants said they are still worried about who they should pay rent to, and who has control over their security deposits.
"At the end of the day, have to find a way to pay the rent, and we’re trying to give as many options as we can through our system to make it as convenient as possible for them," said Adam McCarthy, Smart Asset's owner.
S2 Real Estate
As for getting security deposits back, McCarthy said Smart Asset will accommodate everyone who moves out after May 1. The company can also give credit for pre-paid rent, even though that money is in the since-frozen S2 accounts.
"The biggest message I want to get out is we came into this role for the tenants. Tenants need a landlord, they need to know who to call when there’s an issue, and it’s our role to provide a safe place," said McCarthy.
Tenants rights
What they're saying:
So, what is the community doing to address the larger issue of wanting safe and affordable places to live?
Last week, community leaders launched a safety plan for the south side that is focused on accountability, police relationships, policy reform and crime prevention – pointing to this specific case.
South Side safety plan launched; Milwaukee leaders target crime, trust
Common Ground launched a "South Side Safety Plan" in Milwaukee after months of research and resident concerns, with city leaders backing reforms to address crime and rebuild trust.
"What we heard when we talked to 1,057 people across the south side, the number one issue is crime," said Kevin Solomon with Common Ground. "In particular, it's these (FBI category of) Part II crimes, the drug houses – quality of life issues – vandalism, burglary.
"To hear that the largest landlord on the south side had been systematically using his properties to drug traffic validated everything that we've been hearing."
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What's next:
Common Ground said it has identified more than 3,000 nuisance properties across Milwaukee that it feels should have been declared a nuisance under city ordinances. The organization plans to take that up to city leaders in June.
"'Why didn't these thousands of properties get declared a nuisance? Why is the city on its heels rather than its toes? What's going on? How can we get from reactive to proactive?' Because our neighborhoods need it. Tenants need it," Solomon said. "People are getting hurt, people are getting screwed, people are getting overpriced, and we need to feel that the city's got our back – lock step, not just once we fall."
Earlier this week, a city committee also advanced a change to its nuisance property ordinances to try to give more teeth to existing laws.
The Source: Information in this story is from federal court filings, interviews and prior coverage of the investigation.