T
wo lawsuits filed in Los Angeles Superior Court this month against Douglas Elliman and some of its executives accuse the brokerage's California businesses of engineering kickbacks for select agents and bending rules to benefit the Altman Brothers Team. The brokerage is fighting back with a lawsuit of its own, alleging that former executive William Grasska was involved in a scheme to obtain money from Portfolio Escrow through fake invoices.

    Former Newport Beach office Executive Manager of Sales Christina Carrillo and Grasska describe incidents where credits were not reported on closing statements, leading to inflated commissions for some agents. Carrillo also accuses the Altman Brothers of soliciting clients from other agents' active listings. When she raised concerns about the Altmans with Western Region CEO Stephen Kotler, he allegedly told her "Enough Christi. I have made millions from the Altman Brothers, so shut up."

    Carrillo is suing Douglas Elliman and Kotler for sexual harassment and retaliation, among other allegations. Grasska alleges similar rebuke from the company when he raised concerns about managers at Portfolio Escrow being asked to inflate closing statements to benefit the Altmans.

    Douglas Elliman views the situation differently, alleging in its own lawsuit that Grasska was under investigation for kickbacks and charged expensive meals and lavish hotel stays on his corporate credit card. The brokerage also claims Grasska created a 1031 exchange company that violated his non-compete agreement with the firm.

    The California drama plays out against the background of an executive shakeup at Douglas Elliman, starting with CEO Howard Lorber's departure last week. Lorber was reportedly pushed out amid a board probe into the brokerage's workplace culture and accusations of sexual assault by former brokers. Michael Liebowitz now helms the brokerage as chair and CEO, and Scott Durkin has been terminated as Real Estate CEO.