Landlord sprung hours after arrest

Mohammad Choudry, the defendant in a $1.25 million racketeering lawsuit filed by Milwaukee officials, never made it to the county jail despite being arrested Monday morning.

Instead, the landlord who city prosecutors contend owes nearly $1 million in back property taxes and Municipal Court fines, spent just a few hours in custody while being processed. When it came time to bring him to the county jail, officials "would not accept him ... so he was released." said Milwaukee Police Sgt. Timothy Gauerke.

The confusing story behind Choudry's  brief time in custody began Monday morning during the weekly sheriff's sale, where landlords and others looking for a deal gather in the basement of the Safety Building to buy foreclosed properties. Several of the regulars, including Choudry, face outstanding municipal arrest warrants, though those warrants seldom result in arrests.

Police showed up Monday and arrested Choudry, 56, on a bench warrant issued in July by Milwaukee County Circuit Judge Clare Fiorenza, when Choudry failed to appear in a case involving nearly $6,000 in back property taxes. The warrant states that Choudry should be held in jail until he either pays that debt or lawyers for the city are contacted and schedule a hearing on the matter.

Neither condition was satisfied Monday.

"The sheriff released him without satisfying the purge conditions of the bench warrant," said Joseph Johnson, an attorney with the Kohn law firm, which represents the city on collection matters.

"It's their prerogative," said Kail Decker, the assistant city attorney who filed the racketeering lawsuit. "The sheriff is the one in control."

In an email  issued Thursday afternoon, Sheriff David A. Clark Jr. did not respond to the questions about why Choudry was not taken into custody even though there was a court order saying he should be held until he met the conditions of the warrant.

"Too bad I don't hear from you when a judge releases a violent career criminal from custody," Clarke said in the email issued by a spokeswoman. "This is a civil matter between the city of Milwaukee and this landlord that belongs in civil court not criminal court."

The city's civil lawsuit, filed in Milwaukee County Court, argues Choudry repeatedly hid his identity as an owner of properties riddled with building code violations while avoiding paying court fines and property taxes. By alleging racketeering, the city hopes to collect double the actual damages incurred by taxpayers.

Choudry is one several landlords  highlighted in an ongoing Milwaukee Journal Sentinel investigation about landlords who buy more properties while renting out substandard units and failing to pay taxes and fines.

Landlord Games - Milwaukee Journal Sentinel - jsonline.com

In a motion tied to the lawsuit, Decker argues that  "Choudry's business model allows him to make a one-time investment of $9,000 (to buy a property and then) generate up to $67,200 in revenue over the subsequent four years." Decker is asking the court to place Choudry's properties in a receivership and block him from buying additional properties in Milwaukee.

Johnson, the attorney in the contempt case, said he was not contacted by the Sheriff's Office before or since Choudry's release, even though his firm's phone number is on the warrant as the contact to schedule a hearing.

"We have done (similar motions) in other counties and generally if the person is picked up, the sheriff does contact us," he said.

Johnson and other officials said it is unusual for police in Milwaukee County to arrest people on bench warrants issued in civil court court actions.

In this case, however, the city attorney's office wanted the police to pick up Choudry so he could be served with the racketeering lawsuit. The lawsuit and the contempt citation are not connected.

Decker served Choudry with the lawsuit Monday while he was in police custody.

"We were very much aware that (Choudry's) appearances in court are rare and infrequent," Decker said, referring to the dozens of times Choudry has not shown up in municipal or circuit court on various matters. "We wanted some assurances that we would be able to serve him with the lawsuit."

Choudry did not respond to requests for comment Tuesday and Wednesday. Messages were left on his voicemail, at an office that he has in a restaurant on Fond du Lac Avenue and at his home on S. 49th Street.

On the door of his home, there were notices from a process server seeking to serve his ex-wife and an associate with summons.