Douglas Elliman Realty president fired days after CEO stepped down
Scott Durkin, president and chief executive of Douglas Elliman Realty was fired on Friday, according to a filing with the Securities and Exchange Commission. Days earlier, Howard Lorber, president, chief executive, and chairman of the board for the parent company, retired suddenly. Their departures are effective immediately.
There was no reason listed in the filing for Durkin’s termination. But according to reporting by the Wall Street Journal citing people familiar with the matter, Lorber was pushed to step down following an internal investigation that revealed concerns about the company’s culture, for one.
According to the Journal, a special committee was formed by the board of directors recently to look into the accusation of sexual misconduct by two former brokers and brothers: Tal and Oren Alexander. Before they started their own firm, they were stars at Douglas Elliman. The two brothers closed billions of dollars in real estate deals. Then they were accused of sexual assault. The Real Deal first reported that Oren and Alon, his twin who did not work in real estate, were named in lawsuits from two women who accused them of sexual assault. A third lawsuit eventually named Tal. More women came forward, too, in other reports, including an investigation from the New York Times. The Federal Bureau of Investigation is looking into allegations of sexual assault by all three brothers, the Journal previously reported.
It wasn’t the first internal review, according to the Journal—a prior one conducted by an external lawyer wasn’t sufficient for the board. Its directors were apparently concerned about the relationship between that lawyer and Lorber as they’re longtime friends. The reporting claims the scope of the investigation is beyond just the accusations involving the Alexander brothers. And poor financial results were also to blame, per the Journal, citing those familiar.
Poor financials in the current housing world aren’t too surprising. We’re at a standstill resulting from high home prices, higher mortgage rates than what people are used to, and low supply. Existing home sales fell to their lowest point in almost three decades last year and they’re on track for another depressing one. None of that is good for a real estate company or its brokerage subsidiary. Its stock is trading at $1.94 a share.
However, in a filing with the Securities and Exchange Commission 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 did not respond to Fortune’s request for comment regarding the Journal’s reporting. Instead, the company shared the following statement from its new chief executive and chairman, Michael Liebowitz, on Durkin’s replacement.
“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 company also directed Fortune to the press release announcing Lorber’s retirement, which in part 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 almost nine years; and Lorber has helmed the firm for more than 20 years.
