Scott Durkin, president and chief government of Douglas Elliman Realty was fired on Friday, in line with a submitting with the Securities and Change Fee. Days earlier, Howard Lorber, president, chief government, and chairman of the board for the mother or father firm, retired immediately. Their departures are efficient instantly.
There was no cause listed within the submitting for Durkin’s termination. However in line with reporting by the Wall Avenue Journal citing folks acquainted with the matter, Lorber was pushed to step down following an inside investigation that exposed issues in regards to the firm’s tradition, for one.
In accordance with the Journal, a particular committee was shaped by the board of administrators not too long ago to look into the accusation of sexual misconduct by two former brokers and brothers: Tal and Oren Alexander. Earlier than they began their very own agency, they have been stars at Douglas Elliman. The 2 brothers closed billions of {dollars} in actual property offers. Then they have been accused of sexual assault. The Actual Deal first reported that Oren and Alon, his twin who didn’t work in actual property, have been named in lawsuits from two ladies who accused them of sexual assault. A 3rd lawsuit ultimately named Tal. Extra ladies got here ahead, too, in different stories, together with an investigation from the New York Instances. The Federal Bureau of Investigation is trying into allegations of sexual assault by all three brothers, the Journal beforehand reported.
It wasn’t the primary inside evaluation, in line with the Journal—a previous one carried out by an exterior lawyer wasn’t adequate for the board. Its administrators have been apparently involved in regards to the relationship between that lawyer and Lorber as they’re longtime buddies. The reporting claims the scope of the investigation is past simply the accusations involving the Alexander brothers. And poor monetary outcomes have been additionally accountable, per the Journal, citing these acquainted.
Poor financials within the present housing world aren’t too stunning. We’re at a standstill ensuing from excessive dwelling costs, larger mortgage charges than what persons are used to, and low provide. Present dwelling gross sales fell to their lowest level in nearly three many years final 12 months and so they’re on monitor for one more miserable one. None of that’s good for an actual property firm or its brokerage subsidiary. Its inventory is buying and selling at $1.94 a share.
Nonetheless, in a submitting with the Securities and Change Fee disclosing Lorber’s exit, it states: “Mr. Lorber’s resignation was not due to any disagreement with the Company on any matter relating to the Company’s operations, policies or practices.”
Douglas Elliman didn’t reply to Fortune’s request for remark relating to the Journal’s reporting. As an alternative, the corporate shared the next assertion from its new chief government and chairman, Michael Liebowitz, on Durkin’s substitute.
“With his impressive background in residential real estate, Richard Ferrari is a proven leader and the right choice to head corporate operations. His decades of executive and agent experience will help guide our brokerage, our agents and our staff towards a bright new future and even greater success. I wish Scott Durkin all the best in his future endeavors.”
The corporate additionally directed Fortune to the press launch asserting Lorber’s retirement, which partially reads: “Douglas Elliman extends its deepest appreciation to Mr. Lorber for his strategic vision and years of dedication and hard work.”
Durkin, who reported to Lorber, was with Douglas Elliman for nearly 9 years; and Lorber has helmed the agency for greater than 20 years.
