Philly Inspector Threatens Commercial RE Owner

An inspector with the Philadelphia Department of Licenses and Inspection (LandI) has been charged with extortion under the Hobbs Act. U.S. Attorney Zane David Memeger announced the indictment, which alleges that Kenneth Gassman used his position with LandI in an effort to compel a commercial property owner to sell the property to him. The Hobbs Act bars actual or attempted robbery or extortion affecting interstate or foreign commerce.

According to the indictment, Gassman, who owned multiple properties in and around the Fishtown section of Philadelphia, made two offers to buy the E. Thompson Street property and engaged in conduct “designed to inhibit the property owner's ability to sell the property to others and to compel the owner to sell the property to him,” after the owner rejected the offers.

Gassman allegedly caused other LandI inspectors to inspect the property and issue violations, and has been accused of vandalizing the property, removing “for sale” signs, and using aliases to contact Philadelphia's 311 system with complaints that the property was unsafe. The owner said that he has spent money to make unnecessary repairs and to contest the LandI violations.