S
cott Durkin, president and CEO of Douglas Elliman Realty, was abruptly fired on Friday, according to a Securities and Exchange Commission filing. This comes just days after Howard Lorber, president, CEO, and chairman of the parent company, unexpectedly retired. Both departures are effective immediately.

    The reasons for Durkin's termination were not disclosed in the filing, but sources close to the matter suggest that Lorber's sudden exit was linked to an internal investigation into concerns about the company's culture. The probe reportedly followed allegations of sexual misconduct against two former top brokers, Tal and Oren Alexander, who left Douglas Elliman to start their own firm.

    The brothers, known for closing billions in real estate deals, were accused of sexual assault by multiple women, with lawsuits filed against them and an FBI investigation underway. An internal review was conducted after a previous external investigation failed to satisfy the board, which had concerns about the relationship between the lawyer conducting the probe and Lorber, who is a longtime friend.

    The investigation's scope went beyond the Alexander brothers' allegations, also examining poor financial performance. The real estate market has been struggling due to high home prices, rising mortgage rates, and low supply, leading to declining existing home sales. Douglas Elliman's stock price has suffered as a result, trading at $1.94 per share.

    In a statement, the company denied any disagreement with Lorber over operations or practices, citing his resignation was not related to any issues. The new CEO, Michael Liebowitz, praised Durkin's replacement, Richard Ferrari, who brings decades of experience in residential real estate and will lead corporate operations.