Owner of Massachusetts Sober Homes Ordered to Pay $3.8 Million for Sexual Harassment of Tenants

The owner and operator of a group of Massachusetts sober homes has ordered to pay $3.8 million in damages after being found liable by a federal jury in Boston for the sexual harassment of tenants, the U.S. Attorney’s Office of the District of Massachusetts announced Monday.

Following a five-day trial, on May 17, 51-year-old Peter McCarthy, of Lynn, Mass., owner of Steps to Solutions, Inc., was found liable for sexual harassment and retaliation in violation of the Fair Housing Act, a federal anti-housing discrimination law.

The federal jury awarded $3.8 million in damages to seven identified victims of sexual harassment who rented sober homes from McCarthy.

The Department of Justice (DOJ) is also intending to seek a civil penalty against McCarthy and a court order to prevent him from managing Steps to Solutions sober homes or having contact with residents or prospective tenants.

“This defendant preyed on vulnerable women in recovery from addiction and forced them to choose between his sexual demands and keeping a roof over their heads,” acting U.S. Attorney Joshua Levy said Monday. “Housing is a fundamental need and every person has the right to feel safe and secure in their own home. No one should be subjected to unwanted demands for sex acts from their landlord.”

“This case should send a powerful message to all landlords that there are severe consequences to sexually exploiting tenants,” Levy said.

According to federal prosecutors, since at least 2009 through 2021, McCarthy sexually harassed residents of his sober homes by offering to forgive or reduce rent, granting extra house privileges, or waiving security deposits in exchange for engaging in sex acts or sending sexually explicit photographs.

“Sexual harassment of tenants is abhorrent, and the department stands committed to holding housing providers accountable,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division.

“We commend the survivors who came forward to testify about the heinous conduct that they experienced,” Clarke said. “This verdict sends a message that there is no place in our society for landlords who abuse their position of power to prey on vulnerable people.”