Edited by: TJVNews.com

Douglas Elliman, one of the nation’s largest real estate brokerages, has recently undergone a leadership shake-up following an investigation that uncovered a troubling work environment marred by allegations of sexual misconduct and a culture steeped in inappropriate behavior. The New York Post reported that Howard Lorber, longtime executive chairman and CEO of Elliman’s parent company, Vector Group, stepped down on Monday after more than two decades at the helm. His departure follows a company-led probe that reportedly exposed a “sexually charged” work culture at Douglas Elliman, according to a report shared by the Wall Street Journal and covered by The New York Post.

In an official statement, Douglas Elliman described Lorber’s departure as a retirement, but according to The Post, sources suggest that the board encouraged him to step down. This development caps Lorber’s long tenure overseeing the brokerage, which has become a powerhouse in high-profile real estate markets across New York, Florida, and Southern California, with a portfolio worth approximately $170 million. The Post noted that Scott Durkin, president and CEO of Elliman’s brokerage division, was also relieved of his duties on Friday, although no official explanation for his removal was filed with the Securities and Exchange Commission.

Earlier this year, The Post reported that Douglas Elliman’s board launched an investigation following allegations against former star brokers Tal and Oren Alexander. The Alexander brothers, who rose to prominence within the firm, face accusations of sexually assaulting over 30 women, with alleged misconduct reportedly spanning back to their early years with the company in 2008. The Post revealed that the initial investigation, conducted by Manhattan attorney Marc Kasowitz, was halted due to concerns regarding Kasowitz’s longstanding ties with Lorber. Kasowitz, speaking with The Wall Street Journal, defended his approach, stating, “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.” The New York Post sought additional comment from Kasowitz, though further details remain limited.

In light of these initial findings, the board commissioned a secondary investigation, which, according to The Post, uncovered further allegations that extended beyond those linked to the Alexander brothers. This deeper probe exposed a pervasive culture that stretched across the company, implicating senior leadership and highlighting a workplace environment that many have described as hostile and inappropriate. Following the investigation’s findings, Elliman’s shares saw a 3.5% increase, a development that The Post attributes to Wall Street’s potential confidence in the company’s attempt to rectify its internal challenges.

Douglas Elliman’s decision to terminate key executives and examine its workplace culture marks a pivotal moment for the brokerage. The Post has consistently highlighted that this leadership restructuring underscores the firm’s commitment to confronting the issues that have plagued its reputation. For a company as established as Douglas Elliman, regaining public trust and establishing a secure, respectful work environment may be essential steps in ensuring long-term sustainability in a competitive real estate market.

According to The Post, the decision to part ways with Lorber came not only as a response to revelations of a sexually charged work culture but also due to Elliman’s sharp financial decline. As of late 2021, Elliman had a market capitalization of $900 million, a figure that has since plummeted to $170 million.