Springfield, MA — A syndicate of New Jersey landlords that controlled one of the largest affordable housing portfolios in Springfield will pay $10 million in penalties and restitution after a lawsuit accused them of running their properties into dangerous disrepair, ignoring tens of thousands of tenant complaints, and misusing millions of dollars in security deposits.

The case, filed by Attorney General Andrea Joy Campbell, targeted Schweb Partners LLC, Schweb Management LLC, and more than a dozen Springfield Gardens holding companies.

New Jersey developers Abraham Weber, Jacques Schmidt, and Abraham Kohn orchestrated the scheme, using Springfield as a real estate “pump-and-dump.” Their strategy was simple: acquire properties, collect rent while skimping on maintenance, and then flip the buildings a few years later for profit.

The group bought up 62 apartment buildings between late 2020 and early 2021, nearly 1,300 units in total. In just a few months, they became one of Springfield’s largest landlords, overseeing much of the city’s low-cost housing stock where many tenants relied on government vouchers.

What followed, according to the Attorney General, was a campaign of neglect and exploitation.

Families Left Without Heat and Hot Water

Tenants across all 62 buildings regularly went without basic services. In the dead of winter, entire complexes lost heat for days at a time, with inspectors recording indoor temperatures as low as the 40s. Families with children and infants reported dangerous cold, while landlords sometimes handed out space heaters — despite a history of fires in their buildings. In one instance, a tenant who complained about freezing conditions was billed a $75 “false no heat” fee after the heat came back on before maintenance arrived.

Hot water was just as unreliable. At one property, families with young children went weeks without hot water in 2022 until a housing court forced the company to rehouse them. In another case, a tenant boiled water to bathe her baby for three months before hot water was restored.

Mold, Leaks, and Collapsing Ceilings

From the moment Schweb Partners entered Springfield, leaks and water damage plagued the portfolio. Ceilings collapsed in multiple apartments. Mold spread so severely that tenants reported mushrooms growing out of walls. Rather than fix the underlying problems, the landlords often painted over mold. Children, in particular, suffered health consequences from the damp conditions.

Infestations and Security Failures

Tenants described a constant battle with rats, mice, cockroaches, and bedbugs. In some units, rodent droppings were found in children’s clothing and beds. Meanwhile, broken exterior doors and locks left 59 of the 62 buildings open to trespassers. Residents said hallways became sites of drug use, littered with heroin bags, used needles, and even human waste. In other cases, defective doors would not open from the inside, putting families at risk during fires.

Fires and Condemnations

Between 2020 and 2024, at least eight major fires broke out in Springfield Gardens buildings, displacing entire groups of tenants. In one property, a faulty alarm system went unrepaired until the building was condemned. In others, fire alarms rang for hours without reason, raising the risk that tenants would ignore real emergencies.

26,000 Complaints, Few Answers

Over four years, tenants filed more than 26,000 complaints through the landlord’s online portal — averaging nearly 21 complaints per apartment. The company also racked up more than 1,800 code enforcement violations, prompting dozens of lawsuits from the City of Springfield. Courts issued multiple repair orders, but the landlords were slow to act and were repeatedly found in contempt.

Despite the avalanche of warnings, tenants say they rarely saw results. Maintenance was chronically understaffed — only 10 workers were employed to handle all 62 buildings during the first heating season — and in many cases, repairs were marked “complete” in the system without any work being done.

Stolen Security Deposits

On top of the housing violations, the lawsuit detailed what officials called outright theft of tenants’ money. The landlords commingled millions in security deposits with their own operating funds, using the cash for expenses. Deposits were not held in interest-bearing accounts, not returned on time, and frequently docked for damage the tenants had not caused. In some cases, deposits were used to pay for repairs the landlords themselves had neglected.

Officials say this violated virtually every part of Massachusetts’ security deposit law.

“Cash Out, Walk Away”

Internal communications showed that by late 2022, after years of profit-taking, the landlords began complaining that “media attacks and constant harassment by code and building inspectors” were hurting revenue. They began selling off their properties in early 2023. By September 2024, they had sold all 62 occupied buildings, leaving them in worse shape than when they bought them. The last building, already condemned after a fire, was unloaded in October 2024.

The $10 Million Resolution

The Attorney General’s office is now seeking to use the $10 million judgment for restitution to tenants, penalties against the companies, and coverage of legal costs. The complaint accused the landlords of violating the state’s Consumer Protection Act, the implied warranty of habitability, and laws protecting tenants’ right to quiet enjoyment.

“This case shows what happens when absentee landlords put profits ahead of people,” Campbell said in a statement. “Springfield families endured freezing winters, collapsing ceilings, infestations, and stolen deposits, all while their landlords cashed out and walked away. With this resolution, we are holding them accountable and working to restore justice for tenants.”

Tenant advocates say the case is one of the most egregious examples of systemic neglect in Massachusetts housing in years, and they hope the judgment sends a clear warning to other landlords who treat vulnerable renters as disposable.

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