Kotler has been with Douglas Elliman for greater than 30 years, and can now return to work in gross sales alongside his brother and son on the Kotler Staff in New York Metropolis following a tumultuous interval for western operations.
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After a tumultuous few months of coping with lawsuits from former disgruntled staff, Douglas Elliman Western Area CEO Stephen Kotler has stepped down from his govt function on the brokerage, in keeping with an inside memo from Douglas Elliman, Inc. President and CEO Michael Liebowitz that Inman has reviewed.
Stephen H. Kotler | Douglas Elliman
Kotler will stay at Douglas Elliman and be a part of the Kotler Staff in New York Metropolis, which incorporates Kotler’s son, Max, and his brother, Michael.
“We are deeply grateful for Stephen’s leadership and the lasting impact he has made at Douglas Elliman,” Liebowitz wrote.
Representatives for Douglas Elliman couldn’t be reached for remark.
In October, Kotler and Douglas Elliman’s California brokerage turned the recipients of two lawsuits, one from former Newport Seaside workplace Govt Supervisor of Gross sales Christina Carrillo and the opposite from former Portfolio Escrow president Invoice Grasska. Portfolio Escrow is an escrow firm Douglas Elliman acquired in 2020.
Christi Carrillo | IS Luxurious
Carrillo’s lawsuit alleged that credit had not been reported on closing statements with the intention to inflate the commissions of sure brokers, and known as out The Altman Brothers for receiving preferential therapy, in addition to poaching shoppers from different brokers’ lively listings. Carrillo moreover accused Kotler of sexual harassment and retaliation. Elliman mentioned it had by no means obtained any complaints of sexual harassment from Carrillo whereas she was with the agency. The lawsuit is constant to maneuver via the court docket. Elliman and Kotler’s current request to vary the venue from LA County to Orange County court docket was denied on Tuesday, and the defendants should reply to Carrillo’s grievance by Feb. 24.
Grasska’s lawsuit made related allegations about altered closing statements, claiming that Douglas Elliman executives requested managers at Portfolio Escrow to “inflate a closing statement to allow the Altmans to earn more commissions.” Star dealer Jason Oppenheim was additionally implicated, though anonymously, in Grasska’s lawsuit for partaking in an “illegal kickback” scheme, Inman uncovered in December. Elliman additionally hit Grasska again with a countersuit, alleging he engaged in kickbacks of his personal, made private prices on an organization bank card and violated his non-compete with Elliman by making a 1031 trade known as Sienna Monetary.
Invoice Grasska | Riviera Monetary Companions
Grasska’s and Douglas Elliman’s lawsuits have been settled on the finish of December. The phrases of the settlement weren’t made public.
Within the memo about Kotler’s transfer, Liebowitz additionally introduced new management within the area. Invoice Begert is stepping in as COO of the Western Area. Paul Hernandez has been named president of brokerage in California and Nevada, whereas Catherine Lee will function president of brokerage in Texas and Joshua Saslove shall be president of brokerage in Colorado. Liebowitz mentioned the brand new leaders would report on to him and make choices about recruitment, retention and advertising and marketing particular to their areas.
“This transition marks an exciting opportunity to advance our vision of creating an entrepreneurial, agent-centric brokerage of the future,” the memo continues. “Our new structure will enable faster, localized decision-making, support targeted growth in luxury markets, and enhance our recruitment and retention initiatives.”
Michael S. Liebowitz | Douglas Elliman
Liebowitz’s memo echoed sentiments he expressed throughout his first-ever look at Inman Join New York in January, throughout which he talked about that the agency was shifting towards extra localized operations that will give extra management energy to people on the helm of its particular areas, leading to a form of hybrid brokerage mannequin.
Kotler’s transfer away from the chief house at Douglas Elliman is simply the newest in a collection of high-profile shakeups on the agency. Liebowitz took the helm after longtime CEO and chairman Howard Lorber instantly retired in October, an announcement that was shortly adopted by former brokerage president and CEO Scott Durkin’s termination, which was revealed in a SEC submitting.
Longtime agent and Million Greenback Itemizing LA star Tracy Tutor additionally left the agency, alongside along with her staff, for Compass in January.
All of this occurred amidst the backdrop of intensifying investigations into Tal and Oren Alexander, high luxurious brokers who have been affiliated with Douglas Elliman from about 2012-2022, after which they launched Official Companions with Aspect. The brothers have been arrested on intercourse trafficking prices in December, and can stay in federal custody till their trial, which has not but been scheduled. Douglas Elliman reportedly cooperated with federal investigators in offering them with any documentation associated to the brothers whereas they have been affiliated with the agency, in keeping with a report in December from Bloomberg.
Kotler joined Douglas Elliman greater than 30 years in the past as an agent in New York Metropolis. He first began in administration whereas nonetheless in New York, then in the end was known as on to assist spearhead new improvement in California, and most just lately spent most of his time as CEO of the Western Area in Texas, the place the brokerage launched in 2019.
E-mail Lillian Dickerson
