Report Alleges Jason Oppenheim Involved in Kickback Scheme

Jason Oppenheim waived off a report that ties him to a Douglas Elliman lawsuit accusing a former top escrow executive of engaging in a kickback scheme.

The “Selling Sunset” star was cited in a report from Inman on Friday that alleges Oppenheim is the unnamed broker referenced in a Los Angeles Superior Court lawsuit filed by Douglas Elliman of California Financial LLC and its Portfolio Escrow subsidiary against the escrow arm’s former President William Grasska.

The suit — which include complaints for breach of contract, fraud and negligence among other things — alleges Grasska along with the escrow operation’s former relationship manager Kari Yocam and former escrow officer Maria Trangelo-Molina engaged in “illegal kickbacks” with “at least one high-profile Los Angeles real estate broker that is now a star of a reality television show.”

Escrow arrangement

The lawsuit accuses the former employees of paying the unnamed broker in exchange for funneling real estate business to Portfolio Escrow. Neither Yocam nor Trangelo-Molina are named as defendants in the lawsuit.

The arrangement goes back to at least Jan. 27, 2015, with the unnamed broker receiving more than $100,000, the lawsuit alleged.

Inman’s report cited “a source close to the investigation” in identifying Oppenheim as the unnamed individual in addition to emails indicating commissions of some escrow officers and Portfolio Escrow were sent to Oppenheim.

Douglas Elliman disputed any characterization of Portfolio Escrow, the company, having involvement in the arrangement and declined to comment to The Real Deal on the accuracy of the report in citing Oppenheim.

Oppenheim, reached Friday, told TRD he hadn’t read Douglas Elliman’s October lawsuit against Grasska and denied any wrongdoing.

“Just calling it a scheme, it’s so ridiculous. It was a legitimate structure accountants and attorneys reviewed,” Oppenheim said.

Grasska, reached Friday, declined to comment on the litigation or the report on Oppenheim.

Portfolio Escrow did not respond to a request for comment.

Oppeneheim recalled taking a meeting with someone high up at Portfolio Escrow but couldn’t recall the arrangement’s details. He said he was assured during that meeting the arrangement was approved by lawyers and accountants and “that was the only reason I was comfortable with it.” He estimated the arrangement may have lasted a year.

Oppenheim said he received a couple thousand dollars monthly but disputed the total amounting to the $100,000 cited in the lawsuit. Instead, he said the amount may have been closer to $20,000.

He ended that deal following a recommendation from his advisor due to the heavy regulations surrounding the escrow industry.

“Business decision”

Escrow, which can be a lucrative business for many brokerages, is overseen by the California Department of Financial Protection and Innovation. The DFPI handles the licensing and regulation of independent escrow firms within the state.

The liabilities associated with that business is one of the reasons Oppenheim said he has never added that or other ancillary services to his brokerage.

The Oppenheim Group had been using Portfolio Escrow before that arrangement and continued after it, he added.

“Brokerages monetize escrows all the time and it’s literally a business decision as to whether you want to take on the risks or liabilities of having an in-escrow company,” Oppenheim said. “It’s a business decision and there’s nothing nefarious about it. To call it a kickback scheme or plot [in the lawsuit] is probably just trying to deflect or muddy the waters.”

Douglas Elliman said in its lawsuit the California Department of Real Estate, DFPI, Los Angeles Police Department and Internal Revenue Service were notified of the “improper activities” laid out in its claims and additional lawsuits are in the works on Grasska’s “co-conspirators.”

The brokerage declined to comment on whether any legal action or a DRE complaint would be filed against Oppenheim.

Elliman’s lawsuit against Grasska is one of three currently winding through Los Angeles Superior Court.

The others include one from Douglas Elliman Newport Beach Executive Manager of Sales Christina Carrillo accusing Douglas Elliman of California, Douglas Elliman of California Financial and Western Region CEO Stephen Kotler of sexual harassment and wrongful termination.

Grasska is suing Portfolio Escrow, Douglas Elliman of California, Douglas Elliman California Financial, Kotler, Western Region COO William Begert, Portfolio Escrow officer Melinda Topete and Portfolio Encino Branch Manager Renee Mills of several misdeeds, including retaliation, breach of contract, defamation and unfair business practices.

To contact the reporter, email kari.hamanaka@therealdeal.com