Lynn resident Peter McCarthy, 51, has been found liable for demanding sexual favors from female tenants at sober homes he owned and operated in exchange for reduced rent and other privileges. He has been ordered to pay $3.8 million to seven victims, officials said.
Following a five-day trial, a federal jury in Boston found that McCarthy violated the Fair Housing Act and awarded compensatory damages to his victims.
“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 S. Levy’s office said in a statement.
McCarthy owned and operated Steps to Solutions Inc., which offers living arrangements for people recovering from substance-use disorders.
He was a registered sex offender from 2004 to 2015 and was convicted of indecent assault and battery in 1992.
McCarthy denied the allegations. His attorney, Brian Kelly, said on Monday that his client and Steps to Solutions “are considering the options, including the appellate process, and have no comment at this time.’’
The Department of Justice also intends to seek a civil penalty and a court order against McCarthy to prevent him from managing Steps to Solutions sober homes or having contact with residents or prospective tenants, Levy’s statement said.
