Scott Durkin, president and chief government of Douglas Elliman Realty was fired on Friday, in keeping with a submitting with the Securities and Alternate Fee. Days earlier, Howard Lorber, president, chief government, and chairman of the board for the mum or dad firm, retired instantly. Their departures are efficient instantly.
There was no cause listed within the submitting for Durkin’s termination. However in keeping with reporting by the Wall Road Journal citing folks acquainted with the matter, Lorber was pushed to step down following an inner investigation that exposed considerations concerning the firm’s tradition, for one.
In response to 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 had been stars at Douglas Elliman. The 2 brothers closed billions of {dollars} in actual property offers. Then they had been accused of sexual assault. The Actual Deal first reported that Oren and Alon, his twin who didn’t work in actual property, had been named in lawsuits from two ladies who accused them of sexual assault. A 3rd lawsuit finally named Tal. Extra ladies got here ahead, too, in different reviews, together with an investigation from the New York Instances. The Federal Bureau of Investigation is wanting into allegations of sexual assault by all three brothers, the Journal beforehand reported.
It wasn’t the primary inner evaluation, in keeping with the Journal—a previous one carried out by an exterior lawyer wasn’t enough for the board. Its administrators had been apparently involved concerning 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 had been additionally guilty, per the Journal, citing these acquainted.
Poor financials within the present housing world aren’t too shocking. We’re at a standstill ensuing from excessive dwelling costs, greater mortgage charges than what individuals are used to, and low provide. Present dwelling gross sales fell to their lowest level in virtually three many years final yr and so they’re on observe 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 Alternate 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 concerning 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 saying Lorber’s retirement, which partly 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.
