The New York state comptroller has requested the true property brokerage eXp Realty to open an unbiased investigation into sexual harassment and assault allegations uncovered in a New York Instances article final month.
As New York’s chief fiscal officer, the comptroller, Thomas DiNapoli, is the trustee of the New York State Frequent Retirement Fund. In accordance with the newest SEC submitting, the pension fund held almost 27,000 shares of eXp World Holdings, the publicly-held father or mother firm of eXp Realty.
In two separate lawsuits, 5 present and former brokers at eXp Realty stated that two prime brokers on the brokerage drugged and them assaulted them at separate eXp recruiting occasions. 4 of them stated they had been subsequently sexually assaulted, and The Instances investigation uncovered a sample of eXp management silencing those that tried to make experiences.
“The New York Instances report raised an enormous pink flag for us as an investor in that firm,” Mr. DiNapoli stated in an interview. “We discovered the allegations very regarding and as a shareholder, we’re asking questions. We would like a public reporting of their efforts to stop harassment.”
He despatched a letter to the eXp chief govt, Glenn Sanford, requesting that the corporate set up an unbiased committee to look not solely into the allegations, however into gaps in insurance policies which will have set the stage for assaults to happen. Mr. DiNapoli wrote that he was involved in regards to the “authorized and reputational dangers” introduced by the allegations.
Carolyn Service provider, a spokesperson for eXp Realty, stated in a press release that the brokerage is already conducting an unbiased overview. “eXp takes its accountability to foster a secure and inclusive atmosphere very critically and has zero tolerance for abuse, harassment, or misconduct of any sort,” she stated. “The conduct these girls describe is abhorrent and unacceptable.”
She additionally stated the brokerage will talk with Mr. DiNapoli straight to handle issues. (The Instances beforehand discovered that the brokerage didn’t reply to a number of of the complaints of ladies who stated they had been assaulted.)
Prior to now two years, Mr. DiNapoli has filed related letters with Tesla, Starbucks and the online game firm Activision Blizzard, after allegations of sexual harassment at these firms. He described the transfer as a primary step and stated that he would think about authorized motion ought to eXp fail to reply.
In 2018, Mr. DiNapoli led a lawsuit in opposition to Steve Wynn and the officers and administrators of Wynn Resorts following experiences of abuse and sexual misconduct. That swimsuit was settled for $90 million in 2019.
eXp was based by Mr. Sanford in 2009 and has grown right into a $2 billion firm. It has about 90,000 brokers who take part in a novel cost construction the place brokers recruit different brokers after which take a lower of their earnings. Those that recruit essentially the most are revered, and the corporate’s hierarchy is a series of affect the place cash is continually funneled up.
The 2 males accused of drugging and assault, Michael Bjorkman and David Golden, had been two of eXp’s most profitable recruiters and highest earners. They each deny the allegations, and have left eXp.
However allegations of sexual assault, usually coupled with experiences of the usage of GHB — the “date rape drug” that causes lack of consciousness and reminiscence — persist on the brokerage. As lately as Might, one other feminine dealer for the corporate stated she blacked out whereas attending an eXp convention in Orlando, and when she regained consciousness, she was in a wierd lodge mattress and an actual property photographer she had met that night was on prime of her, penetrating her together with her fingers round her neck.
A consultant for eXp instructed The Instances in December that the corporate has zero tolerance for abuse and famous that each Mr. Golden and Mr. Bjorkman had been unbiased contractors slightly than workers. The corporate had responded to the allegations as quickly as they had been delivered to their consideration, the consultant has stated.
The ladies within the lawsuits stated that they’d made a number of experiences to eXp leaders, together with Mr. Sanford, and had been ignored for months and even years. Mr. DiNapoli famous this in his letter to Mr. Sanford.
“The plaintiffs claimed that eXp Realty was conscious of the alleged conduct of the concerned male brokers, contradicting public statements made by the corporate,” he wrote.
The attorneys representing the 5 girls welcomed Mr. DiNapoli’s name for inquiry.
“We’re heartened that the New York State comptroller has taken the experiences of assault at eXp critically. We agree that an investigation is warranted and that’s precisely why we introduced the allegations ahead. We would like change,” stated Andrea S. Hirsch, accomplice at Cohen Hirsch, the agency representing the ladies.
