Kotler has been with Douglas Elliman for more than 30 years, and will now return to work in sales alongside his brother and son on the Kotler Team in New York City following a tumultuous period for western operations.
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After a tumultuous few months of dealing with lawsuits from former disgruntled employees, Douglas Elliman Western Region CEO Stephen Kotler has stepped down from his executive role at the brokerage, according to an internal memo from Douglas Elliman, Inc. President and CEO Michael Liebowitz that Inman has reviewed.
Stephen H. Kotler | Douglas Elliman
Kotler will remain at Douglas Elliman and join the Kotler Team in New York City, which includes 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 could not be reached for comment.
In October, Kotler and Douglas Elliman’s California brokerage became the recipients of two lawsuits, one from former Newport Beach office Executive Manager of Sales Christina Carrillo and the other from former Portfolio Escrow president Bill Grasska. Portfolio Escrow is an escrow company Douglas Elliman acquired in 2020.
Christi Carrillo | IS Luxury
Carrillo’s lawsuit alleged that credits had not been reported on closing statements in order to inflate the commissions of certain agents, and called out The Altman Brothers for receiving preferential treatment, as well as poaching clients from other agents’ active listings. Carrillo additionally accused Kotler of sexual harassment and retaliation. Elliman said it had never received any complaints of sexual harassment from Carrillo while she was with the firm. The lawsuit is continuing to move through the court. Elliman and Kotler’s recent request to change the venue from LA County to Orange County court was denied on Tuesday, and the defendants must respond to Carrillo’s complaint by Feb. 24.
Grasska’s lawsuit made similar allegations about altered closing statements, claiming that Douglas Elliman executives asked managers at Portfolio Escrow to “inflate a closing statement to allow the Altmans to earn more commissions.” Star broker Jason Oppenheim was also implicated, although anonymously, in Grasska’s lawsuit for engaging in an “illegal kickback” scheme, Inman uncovered in December. Elliman also hit Grasska back with a countersuit, alleging he engaged in kickbacks of his own, made personal charges on a company credit card and violated his non-compete with Elliman by creating a 1031 exchange called Sienna Financial.
Bill Grasska | Riviera Financial Partners
Grasska’s and Douglas Elliman’s lawsuits were settled at the end of December. The terms of the settlement were not made public.
In the memo about Kotler’s move, Liebowitz also announced new leadership in the region. Bill Begert is stepping in as COO of the Western Region. Paul Hernandez has been named president of brokerage in California and Nevada, while Catherine Lee will serve as president of brokerage in Texas and Joshua Saslove will be president of brokerage in Colorado. Liebowitz said the new leaders would report directly to him and make decisions about recruitment, retention and marketing specific to their regions.
“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 during his first-ever appearance at Inman Connect New York in January, during which he mentioned that the firm was moving toward more localized operations that would give more leadership power to individuals at the helm of its specific regions, resulting in a kind of hybrid brokerage model.
Kotler’s move away from the executive space at Douglas Elliman is just the latest in a series of high-profile shakeups at the firm. Liebowitz took the helm after longtime CEO and chairman Howard Lorber suddenly retired in October, an announcement that was shortly followed by former brokerage president and CEO Scott Durkin’s termination, which was revealed in a SEC filing.
Longtime agent and Million Dollar Listing LA star Tracy Tutor also left the firm, along with her team, for Compass in January.
All of this happened amidst the backdrop of intensifying investigations into Tal and Oren Alexander, top luxury brokers who were affiliated with Douglas Elliman from about 2012-2022, after which they launched Official Partners with Side. The brothers were arrested on sex trafficking charges in December, and will remain in federal custody until their trial, which has not yet been scheduled. Douglas Elliman reportedly cooperated with federal investigators in providing them with any documentation related to the brothers while they were affiliated with the firm, according to a report in December from Bloomberg.
Kotler joined Douglas Elliman more than 30 years ago as an agent in New York City. He first started in management while still in New York, then ultimately was called on to help spearhead new development in California, and most recently spent most of his time as CEO of the Western Region in Texas, where the brokerage launched in 2019.
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