Douglas Elliman’s California Business Hit With Lawsuits
Two Los Angeles Superior Court lawsuits have been filed against Douglas Elliman and some of its executives, accusing the brokerage’s California businesses of engineering kickbacks for select agents and rule-bending to the benefit of the Altman Brothers Team.
Similar Claims
The lawsuits, filed this month, offer similar claims against Douglas Elliman and its executives, accusing the brokerage of not reporting credits on closing statements, leading to inflated commissions for some agents.
In-Fighting in L.A. Court
The in-fighting in L.A. court has placed Douglas Elliman’s California business under the microscope, with scrutiny of its national operations following the abrupt departure of CEO Howard Lorber.
Lawsuits
Two former executives, Christina Carrillo and William Grasska, have filed separate lawsuits against Douglas Elliman, alleging incidents of credits not being reported on closing statements, leading to inflated commissions for some agents.
Carrillo’s Lawsuit
Carrillo, a former Executive Manager of Sales, alleges that she was pushed back on when she brought up concerns about the Altman Brothers, accusing them of soliciting clients from other agents’ and brokers’ active listings. According to her lawsuit, Western Region CEO Stephen Kotler allegedly told her, "Enough Christi. I have made millions from the Altman Brothers, so shut up. If other agents and brokers get fucked over, I don’t care, so be it."
Grasska’s Lawsuit
Grasska, a former president of Douglas Elliman’s Portfolio Escrow, alleges similar rebuke from the company when he brought up allegations of managers being asked to inflate closing statements to benefit the Altmans. According to his lawsuit, Kotler, Topete, and other executives were aware of the issue but did nothing to address it.
Douglas Elliman’s Response
Douglas Elliman has filed a lawsuit of its own, accusing Grasska of kickbacks, charging "expensive meals and lavish hotel stays" on his corporate credit card, and creating a 1031 exchange company that violated his non-compete agreement with the firm. The brokerage also alleges that Grasska conspired with a real estate broker to pay kickbacks in exchange for business.
Conclusion
The lawsuits and in-fighting have put Douglas Elliman’s California business under the microscope, with scrutiny of its national operations following the abrupt departure of CEO Howard Lorber. The company’s response to the allegations has led to further legal action, highlighting the need for transparency and accountability in the real estate industry.
FAQs
Q: What are the allegations against Douglas Elliman?
A: The lawsuits allege that the brokerage’s California businesses have been engineering kickbacks for select agents and rule-bending to the benefit of the Altman Brothers Team.
Q: Who are the parties involved in the lawsuits?
A: The lawsuits involve Douglas Elliman, its executives, and former executives Christina Carrillo and William Grasska.
Q: What is the response from Douglas Elliman?
A: The brokerage has filed a lawsuit of its own, accusing Grasska of kickbacks and other misconduct.
