Howard Lorber’s abrupt exit from Douglas Elliman last week was a result of concerns about the firm’s workplace culture.
The CEO and chairman’s sudden retirement came at the urging of the board of directors over concerns about the firm’s workplace culture and an investigation spurred, at least in part, by sexual assault allegations against two of its former top brokers, brothers Oren and Tal Alexander, the Wall Street Journal reported. Elliman’s shaky financial streak also contributed to the board’s concerns.
The results of the investigation remain unknown.
A spokesperson for Elliman declined to comment on the board’s activities. The firm claimed Lorber’s retirement was not based on a disagreement with the company in a document filed with the Securities and Exchange Commission on Tuesday.
A special committee formed under the board’s direction, led particularly by David Chene, led the review. Chene joined the firm’s board in July after his firm, Kennedy Lewis, loaned Elliman $50 million.
The inquiry was the second internal probe into the company over the last few months, sources told the Journal. The first was led by the firm’s external lawyer, Marc Kasowitz, but the board raised concerns about the review’s findings because of Kasowitz’s longtime friendship and business relationship with Lorber.
“Our firm was preparing to defend the company against potential claims,” Kasowitz told the Journal in a statement. “Any suggestion that in doing so we would be less aggressive or effective in finding out the true facts because of our longtime business and personal relationship with Mr. Lorber makes no sense and is the exact opposite of the truth.”
Lorber owns more than a 4 percent stake in the company, including 3.8 million shares. According to an SEC filing upon his retirement, the former chairman had nearly $5 million worth of unvested shares, which will now be canceled.
Allegations against the Alexander brothers surfaced in June after The Real Deal first reported on two lawsuits accusing Oren and his twin brother, security firm executive Alon Alexander, of raping two women in New York more than a decade ago. Weeks later, Tal was also sued for rape.
Lorber’s handling of the allegations and tenure amid a streak of financial losses were the subject of a letter by Elliman shareholder Brad Tirpak, which urged fellow investors to turn on the veteran executive. But shareholders at the firm’s annual investor meeting voted to renew the chairman’s seat on the board of directors and in favor of his compensation package.
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More than a dozen women have since come forward with allegations against one or more of the Alexanders. Among them were two Elliman brokers, Tracy Tutor and Jessica Cohen, who accused Tal and Oren of drugging them in separate incidents.
An FBI task force on child exploitation and sex trafficking has been interviewing women in recent months over allegations against the Alexanders.
A former Elliman broker told the New York Times Lorber was aware of “at least one incident” where Tal and Oren allegedly drugged an agent, but a spokesperson for the firm denied any incident was ever tied to the brothers and said no formal complaint was ever filed.
The Alexanders, who ended a 10-year stint at Elliman in 2022 to launch their own brokerage, have previously denied the allegations.
“Their employer has also said, unequivocally, that no complaints were ever filed to human resources about the brothers,” Deanna Paul, an attorney Tal Alexander’s attorney, told the Journal.
— Sheridan Wall
This article has been updated with additional context on Howard Lorber’s ownership in Douglas Elliman.