Brophy Courts Trouble

Evidently many others have had similar experiences. Earlier this summer, Wineberg’s case met with unprecedented success, as Brophy paid $300,000 in a settlement – the first such class-action legal victory for tenants in the country. Under the terms of the settlement, Brophy is prohibited from renting out any properties with outstanding building code violations, and anyone who paid rent or security deposits to him between March 20, 2000 and May 15, 2005 has until September 14 to file a claim. So far, over 100 former tenants have done so. The $300,000 – minus lawyers’ fees – will be divided up among them.

The $300,000 class action settlement has already been put aside in cash, but other creditors - like banks, the city, and WE Energies - may not be so lucky. That’s because on August 16, Brophy filed for Chapter 11 bankruptcy. According to the filing, he owes less than $700,000 to his top 20 creditors, but he is still claiming debts in the same range as his assets: between $1 million and $100 million.

This is the latest in a series of maneuvers Brophy has made over the years. His debts and properties have frequently changed hands in off-market deed and mortgage transactions, often in the name of holding companies. As of this May, City property records for Brophy and Troy Jahnke (both doing business under the auspices of Prospect Holding Group LLC) showed they owned, in and around Riverwest, all of the properties listed in the sidebar accompanying this article.

As an example of this, Bray pointed to a man named Ray, who was riding along with Bray in a van full of furniture and tools. “A year ago this guy was living in a van,” said Bray, “and now he’s got an apartment.”

Ray did not want his last name used in the paper, but said this about his landlord: “He gave me a place to live. I had to do some fixing, yeah, but I didn’t have to put any money down. I think he’s a pretty fair guy.”

When Wineberg first rented from Brophy three years ago, she was similarly excited that he was making low-rent apartments available. The “good deal” that she found on Bremen Street, however, turned out not to have window locks or working kitchen appliances, and smoke damage from a previous fire was not yet repaired. The idea of a fire especially concerned her, because the only way to unlock the front door from the inside was with the aid of a pliers.

“It’s definitely important,” she said, “to have affordable housing available to people who need it. But even people of low-income and questionable credit deserve codecompliant, secure, and safe housing. There has to be a balance.”

Karen Jacobs, a court enforcement administrator with the Department of Neighborhood Services, does not expect any bankruptcy proceedings or deed transfers to confound her office. “He still has ownership and liability for the properties,” she said. “We will continue with our enforcement as long he controls the properties, and we know the names of his partners and holding companies. We treat them all the same.”

According to the city’s website, Brophy owes more than $114,000 for code violations. 3rd District Alderman Mike D’Amato called Brophy the worst slumlord he’s seen during his 12 years in office. “He endangered tenants by not fixing code violations, and in some cases, renting out homes that should’ve been boarded up,” said D’Amato. “This is no small matter - irresponsible landlords can truly ruin a neighborhood.” 

Brophy's Properties:

1. 2052 N. 1st
2. 219 E. Lloyd
3. 2237 N. Hubbard
4. 2315-17 N. Booth
5. 2600-04 N. Booth
6. 3463 N. Booth
7. 106 W. Center
8. 504 E. Center
9. 925 E. Center
10. 2626 N. Weil
11. 2646 N. Weil
12. 2929 N. Weil
13. 3813 N. Humboldt
14. 1906-12 E. Bradford
15. 2120-22 N. Oakland
16. 2536-38 N. Oakland
17. 2312 E. Linwood
18. 1115 E. Knapp
19. 1519-25 N. Farwell
20. 1325-27 E. Albion
21. 2021 E. Park
22. 1708 E. Geneva
23. 1616 E. Kenmore
24. 1756 N. Arlington