Elmhurst real estate firm, agent settle steering claims

A suburban realty company and one of its former real estate agents have agreed to pay $120,000 to settle allegations they steered potential homebuyers toward certain neighborhoods based on their race and national origin.

Last July, the federal government sued Elmhurst-based RE/MAX East-West and former agent John DeJohn in a lawsuit based on allegations stemming from a National Fair Housing Alliance undercover investigation in 2004 and 2005.

The watchdog group said DeJohn and his former employer steered a Hispanic tester toward homes in predominately black or Hispanic neighborhoods.

Meanwhile, a white tester was encouraged to look at listings in predominantly white areas such as Bartlett, Geneva and St. Charles.

The defendants didn't admit liability but agreed to pay $120,000 to the National Fair Housing Alliance to settle the lawsuit. The suit originated as a complaint that the housing alliance filed with the U.S. Department of Housing and Urban Development.

Joan Laser, the assistant U.S. attorney who represented the government, said she's pleased and satisfied with the settlement agreement.

"Paying $120,000 shows there's a cost to violating the law," Laser said Wednesday.

"I think it sends a message that steering buyers to a certain neighborhood based on race or national origin is unacceptable," she said. "And the law against it will be enforced."

As part of the settlement, RE/MAX East-West will be required to hire a qualified organization to provide fair housing training to its agents, officials said. The company also must maintain records and submit periodic reports to the United States.

DeJohn, who no longer works as a real estate agent and whose Illinois license expires in April, must receive fair housing training if he decides to become a real estate agent again, officials said.

DeJohn was accused in the federal lawsuit of making discriminatory statements. In one instance, the white tester claimed DeJohn said, "If we go to an area and you don't like it, just let me know. I can't be a bigot but you can be one."

DeJohn, who left Re/Max in 2004, couldn't be reached for comment Wednesday. His attorney also didn't return telephone messages.

However, DeJohn denied the allegations when they first surfaced in August 2005.

"Never. Ever," he told the Daily Herald. "I will sell to anyone, anywhere."

Both a principal partner with RE/MAX East-West and an attorney representing the company didn't return phone calls.