Original Source: http://www.dailycal.org/article.php?id=14851

Landlord Settles Sex Exploitation Lawsuit

Alberto Medrano
Contribution Writer
Friday, April 9, 2004

     The civil suit against a Berkeley landlord who pleaded guilty in 2000 for importing minors from India for sex and cheap labor was settled on Wednesday for an undisclosed amount.

     The case against Lakireddy Bali Reddy, 67, was filed by a teenage girl he smuggled in from India and the estate of her dead sister, who died of carbon monoxide poisoning in an apartment when she was 14.

     While the settlement amount was not revealed, Michael Rubin, the lawyer representing the girls’ family, said that it was substantial.

     “They have enough money to be financially comfortable for the rest of their lives,” Rubin said. “They can now afford the best doctors and the best therapy available.”

     Reddy was indicted in 2000 after Berkeley police discovered the 14-year-old girl dead in one of his apartments.

     Both the 14-year-old and her 16-year-old sister were brought from India and used by Reddy to clean his apartments, work at his restaurants and perform various sexual acts. After the girl died and authorities uncovered the scheme, her family filed suit against Reddy.

     “They didn’t speak English, they were children who knew no one in this country, they had no friends, no money, no way to call home, they were considered to be the lowest caste in that part of India,” Rubin said. “They had never even heard the concept of a lawsuit.”

     There were originally nine plaintiffs, but five of them dropped out because they feared the power and wealth that Reddy possessed in their home state in India, Rubin said. The four remaining plaintiffs were the two girls and two computer engineers in India who came to the United States after Reddy promised them successful jobs. Both were used as waiters in Reddy’s restaurants.

     “He was treated as a god by many of his countrymen,” Rubin said. “When he called for children to come and work for him, that was considered a great honor.”

     Reddy’s attorney, Ted Cassman, could not be reached for comment.

     At the time of the criminal trial, Reddy’s estimated holdings in East Bay real estate alone was $70 million, not including his numerous restaurants and other family holdings.

     Reddy’s brother and sons were also involved in the trafficking of minors to be used as slaves, and either serving prison or waiting to be sentenced. Reddy is serving an eight year federal prison sentence.

     While the settlement has given the family some closure, the effects of the ordeal still linger, Rubin said.

     “Money can help them with therapy, it can help them with doctors, but there is no way to make them truly whole,” said Rubin. “There is no way to make them forget the tragedy, the dead sister. They are scarred for the rest of their lives.”

     The legal theory involving the trafficking of people from other countries is still undeveloped.

     “We sent a message to those who are taking part in trafficking people,” said Rubin. “This is a huge worldwide phenomenon that people are just starting to try and understand and we are trying to come up with legal theories to stop people from doing this.”