Four female real estate agents have been sued by eXp Realty and its founder and CEO Glenn Sanford after nearly fighting off attempts to have their claims tossed out of court. Two male eXP operators are said to have recruited women into the industry, stepping up accusations of turning a blind eye. They attend company events with the promise of career advancement, only to end up using drugs or sexually assaulting them afterwards.
The amended complaint paints a picture of a recruiting tactic that relies heavily on flaunting success, allegedly at the direction of eXp and Sanford. According to the complaint, these displays included top male recruiters drugging women to make them appear attracted to him in an attempt to advance his status. That’s what it means. In a statement, eXp emphasized the agency’s independent contractor status and denied the latest allegations.
On February 28, Fabiola Acevedo and the two agents formerly known as Jane Doe 1 and Jane Doe 2 (now named Tami Sims and Christiana Lundy, respectively), and Another woman, known as Jane Doe 3, filed the complaint. Second amended complaint eXp World Holdings, eXp Realty, and Sanford have suspended eXp agent David Golden, current and former eXp agent Michael Bjorkman, and eXp agent Brent Gove.
The complaint, which is similar to the plaintiffs’ first amended complaint, alleges that the defendants violated federal sex trafficking laws by turning a blind eye and participating in the assault of female investigators by Golden and Bjorkman. claims.
Golden and Bjorkman’s agent recruitment allegedly generated significant income through eXp’s revenue-sharing program for Sanford and Gove, which allowed eXp, Sanford, and Gove to enjoy Golden and Bjorkman’s “financial benefits.” “He allowed their actions to go on for years just so they could continue to do so.”
Both complaints allege that “Defendant eXp Realty attempted to conceal Defendants Bjorkman and Golden’s criminal conduct by attempting to use non-disclosure agreements.”
Inman has reached out to Golden, Bjorkman and Gove for comment. We will update this story if we receive a response.
In a statement, eXp spokeswoman Jennifer Zimmerman told Inman that Bjorkman and Golden were never eXp employees.
“We take our responsibility to foster a safe and inclusive environment very seriously,” Zimmerman said.
“EXp Realty does not tolerate abuse, harassment, or misconduct of any kind, including by independent real estate agents who use our services. As soon as the accuser brought it to our attention, we took action promptly, seriously, and with deep respect, in accordance with our values and the law. We have responded.
“eXp expects and trusts that the courts will give Plaintiffs a full and fair hearing as they pursue their claims against the individuals who allegedly assaulted them. has no basis in fact or law, and eXp vehemently denies it. Although the court has dismissed some claims, we remain prepared to take a position and defend others.”
The lawsuit, filed in the U.S. District Court for the Central District of California, comes amid growing protests against sexual harassment in the real estate industry and calls for the National Association of Realtors to release women who have come forward. Non-disclosure agreements (NDAs) prevent them from speaking about their experiences amid allegations of sexual harassment.
In contrast to the first, the second amended complaint adds details about eXp’s revenue sharing program and the extent to which Sanford and eXp exercised control over Golden and Bjorkman. There is.
this is, 85 page January 29th judgment In the case, Judge Andre Bilott Jr. denied most of the defendants’ motions to dismiss the case, saying the plaintiffs had “plausibly demonstrated a concealment.” Although some claims barred by Nevada’s two-year statute of limitations were dismissed, as was a single claim against Sanford and eXp, Bilott said the plaintiffs should amend and refile their claims. It said it could, and did so in its second amended complaint.
Although the complaint accuses Sanford and eXp of negligent hiring, employment, and supervision of Bjorkman and Golden, Bilott argues that the plaintiffs maintain that Bjorkman and Golden are employees of Sanford and not independent contractors. He said he did not provide any concrete facts that plausibly showed that something was the case.
The second amended complaint seeks to address this flaw by disclosing Sanford and eXp Realty’s role in eXp’s revenue-sharing program, which is described as a “multi-level marketing pyramid scheme. , rather than rewarding participants, it financially rewards the recruitment of new agents.” “Real Estate Sales” “requires the continuous recruitment of new agents… without it we will collapse.”
The complaint alleges that Gove, Sanford, and eXp “instructed, requested, and provided” Bjorkman and Golden with “scripts, tools, and training” on how to enroll agents into the revenue-sharing program. .
“Defendant eXp requires all of its agents, including Defendants Bjorkman and Defendants Golden, to comply with the eXp Agent Attractions Best Practices Guide, the eXp Agent Attractions Success Strategy, and the policies and procedures of eXp Realty. “Defendant eXp Realty controls all agents with respect to recruitment,” the complaint states.
“Defendants eXp Realty, Defendants Sanford, and Defendants Gove provided Defendants Bjorkman and Defendants Golden with the means and means to recruit agents to eXp and exercised significant control over them,” the complaint adds. There is.
According to the complaint, Gove, Sanford and eXp told Golden and Bjorkman that the key to recruiting agents was “projecting an image of personal and professional success” and that eXp allegedly advertised the wealth of top recruiters to encourage more agents to hire. eXp roof shingles.
“Defendant eXp Realty went to great lengths to flaunt the success and wealth of its top influencers in order to persuade others to join the pyramid and achieve the same level of prosperity,” the complaint states. There is.
“This tactic has repeatedly shown top agents sharing photos of yachts, planes, and vacation homes, traveling to Puerto Rico for tax purposes to tour the property, and generally presenting themselves. [how] By participating in the pyramid, they earn a large amount of money every month. ”
According to the complaint, eXp invited agents to events in “beautiful and exotic locations” where they could “rubbing shoulders” with top recruiters and were “encouraged to develop relationships with them, as well as “I also received training on how to utilize and recruit the system.” It’s a parrot of a well-oiled recruiting technique perfected by eXp Realty’s upper echelons. ”
“Both future eXp Realty agents and agents looking to expand their downline need to build a professional network and succeed as eXp Realty agents like Defendants Gove, Bjorkman, and Golden by being in the room where it happens. ” Defendant eXp Realty frequently appeared on stage, advertised in online videos, was featured in eXp Life magazine, and regularly promoted the agent’s influenza in other visible ways. “He is on a par with Enser,” the complaint states.
The plaintiffs said Mr Gove “encouraged and continues to encourage agents to ‘share hotel rooms’, and encouraged them to attend parties by praising the fact that there was a bar with a large selection of alcohol.” “We are encouraging this,” he claims.
According to the complaint, Björkman and Golden assured that: [the availability of] “Drugs, including alcohol and GHB, commonly referred to as date rape drugs,” and they are “drugs that manipulate attendees by secretly sneaking intoxicants into them or fraudulently inducing them to take intoxicants.” Show them that and let them act.” If they were “attracted to Björkman, Golden, and their friends,” he said, “it would enhance Defendants Golden and Björkman’s position in eXp, all under the guise of success.” , in the name of making him appear better as a recruiter for eXp Realty as a result.”
According to the complaint, Golden and Bjorkman shared videos and photos of women they drugged, and Gove was “acutely aware of the techniques” they used at recruitment events.
“Defendants Golden and Bjorkman’s success directly impacted Defendants Gove, Defendants Sanford, and Defendants Exp Realty, who routinely assisted Defendants Golden and Bjorkman in cultivating an image of success.” The complaint states.
“Defendants Gove, Defendants Sanford, and Defendants eXp Realty maintained and controlled the recruiting activities of Defendants Bjorkman and Golden sufficiently to establish vicarious or vicarious liability under the law.” [Trafficking Victims Protection Reauthorization Act] TV plastic. ”
EXp also faces another lawsuit from a female agent who claims she was drugged and sexually assaulted by Golden and Bjorkman, as well as a third lawsuit accusing eXp and team leader Chris Nevada of sexual harassment and retaliation. are also facing.
research from new york times, A paper published in December found that eXp leadership tried to silence people who said they had been assaulted. In late January, the New York State Auditor asked eXp to formally investigate allegations of sexual assault and harassment of women at recruiting events.
Read the second amended complaint.
Email Andrea V. Brambilla.
