Howard Lorber, the CEO of Douglas Elliman, has resigned following an investigation revealing a sexually charged work environment within the real estate brokerage. Lorber’s departure, announced on Monday, ends his over 20-year tenure leading the $170 million company, which operates in New York, Florida, and Southern California.
Allegations and Leadership Changes
While Douglas Elliman suggested in a statement that Lorber, 76, chose to retire, the Wall Street Journal reported that the board had urged him to step down. Additionally, Scott Durkin, president and CEO of the brokerage division, was dismissed on Friday, though the company’s SEC filings did not specify a reason. Following these announcements, Douglas Elliman’s shares rose by more than 3.5% in Monday trading.
The investigation into Douglas Elliman’s workplace culture intensified earlier this year when allegations emerged against former brokers Tal and Oren Alexander. The Alexander brothers are accused of sexually assaulting over 30 women since joining the firm in 2008. In response, the company’s board formed a committee to investigate the claims, though an initial review led by attorney Marc Kasowitz was criticized due to his close ties with Lorber.
Widening Scandal and Financial Decline
The investigation confirmed allegations against the Alexander brothers and uncovered additional misconduct. The scrutiny coincided with declining financial performance; Douglas Elliman’s market capitalization has plummeted from $900 million in late 2021 to $170 million—an 81% decrease.
The Alexander brothers left Douglas Elliman in 2022 to start their own firm, Official Partners, and have denied the allegations. At least three lawsuits have been filed, and the FBI is investigating. Civil suits include claims by Kate Whiteman and Rebecca Mandel, alleging sexual assault in 2010 and 2012. Angelica Parker also accused Alon and Tal Alexander of raping her in 2012, with Oren Alexander allegedly present. Oren Alexander faces separate allegations, including claims of drugging and attempted assault from top agents like Tracy Tutor.
Ongoing Legal and Industry Fallout
A representative for the Alexander brothers denied the accusations, asserting no formal complaints were filed with human resources. Their attorney, Jim Ferraro, characterized the claims as a “total shakedown.” The scandal has shaken the company and the broader real estate industry, raising questions about workplace accountability and leadership standards at major firms.