The New York state comptroller has called on real estate brokerage eXp Realty to launch an independent investigation into sexual harassment and assault allegations exposed in a New York Times article last month.
Comptroller Thomas DiNapoli, New York City’s chief financial officer, serves as a trustee of the New York State Common Retirement Fund. The pension fund owned about 27,000 shares of eXp World Holdings, eXp Realty’s publicly traded parent company, according to its latest SEC filing.
In two separate lawsuits, five current and former eXp Realty agents say two of the brokerage firm’s top agents used drugs and assaulted them at separate eXp recruiting events. Four of them have since said they were sexually assaulted, and a Times investigation revealed a pattern of eXp leadership silencing people who tried to come forward.
“The New York Times report raised a big red flag for us as investors in that company,” DiNapoli said in an interview. “We are very concerned about this allegation and, as shareholders, we have questions. We want them to publicly report on their efforts to prevent harassment.”
He sent a letter to eXp CEO Glenn Sanford asking him to establish an independent commission to investigate not only the allegations but also the policy gaps that may have led to the assault. requested the company. DiNapoli wrote that he was concerned about the “legal and reputational risks” posed by the allegations.
eXp Realty, one of the world’s fastest-growing brokerages, did not immediately respond to a request for comment from The Times.
DiNapoli has filed similar letters over the past two years in response to sexual harassment allegations at companies including Tesla, Starbucks and video game company Activision Blizzard. He described the move as a first step and said he would consider legal action if eXp did not comply.
In 2018, Mr. DiNapoli led a lawsuit against Steve Wynn and the officers and directors of Wynn Resorts following reports of abuse and sexual misconduct. The lawsuit was settled in 2019 for $90 million.
eXp was founded by Sanford in 2009 and has grown into a $2 billion company. It has approximately 90,000 agents who participate in a unique pay structure where agents hire other agents and receive a cut of their earnings. Those who hire the most people are respected, and the company hierarchy is a chain of influence into which money is constantly funneled.
The two men accused of drug use and assault, Michael Bjorkman and David Golden, were two of eXp’s most successful recruiters and highest earners. Both denied the allegations and left eXp.
However, allegations of sexual assault continue at this intermediary, often coupled with reports of the use of GHB, a “date rape drug” that causes loss of consciousness and memory. As recently as May, another female broker at the firm blacked out while attending the eXp conference in Orlando, and when she regained consciousness she was in a strange hotel bed, and a real estate photographer she had met that night told her that she had lost consciousness. He said he was on the bed. I put her hand around her neck and penetrate her.
An eXp representative told the Times in December that the company has zero tolerance for abuse, noting that both Mr. Golden and Mr. Bjorkman were independent contractors, not employees. The company acted quickly after receiving the complaint, a representative said.
The women in the lawsuit said they made multiple reports to eXp leaders, including Sanford, but were ignored for months or even years. Mr. DiNapoli made this point in his letter to Mr. Sanford.
“Plaintiffs allege that eXp Realty was aware of the alleged actions of the male agents involved, contradicting the company’s public statements,” he wrote.
Lawyers representing the five women welcomed DiNapoli’s request for an investigation.
“We are heartened that the New York State Comptroller took the reports of assault at eXp seriously. We agree that the investigation was warranted, and that is exactly why we filed the charges. We want change,” said Andrea S. Hirsch, a partner at the women’s representation firm Cohen Hirsch.
