Four female real estate agents have backed their complaint, accusing eXp Realty and its founder and CEO Glenn Sanford of A male eXp agent allegedly lured women into the industrial and real estate industries and turned a blind eye. Corporate events that promised career advancement, only to drug and sexually assault them.
The amended complaint paints a picture of a recruiting strategy that relied heavily on successful displays, allegedly at the direction of eXp and Sanford. According to the complaint, such displays include top male recruiters drugging women to enhance their status and make women appear attracted to them. eXp denied the latest allegations in a statement, emphasizing the agency’s independent contractor status.
On February 28, Fabiola Acevedo and two agents previously known as Jane Doe 1 and Jane Doe 2 (now known as Tami Sims and Christiana Lundy, respectively) and another The woman known as Jane Doe 3 submitted a Second Amended Complaint Targeting eXp World Holdings, eXp Realty, Sanford, suspended eXp agent David Golden, current former eXp agent Michael Bjorkman and eXp agent Brent Gove.
The indictment, which is similar to the plaintiffs’ first amended indictment, accuses the defendants of violating federal sex trafficking laws by turning a blind eye or engaging in assaults on female agents of Golden and Bjorkman.
Golden and Bjorkman’s agent recruitment allegedly generated significant revenue through a revenue-sharing plan provided by eXp to Sanford and Gove, which allegedly resulted in eXp, Sanford and Gove allowing Golden and Bjorkman’s “conduct to go unchecked for years.” , so that they can continue to obtain economic benefits.”
Both indictments allege that “Defendant eXp Realty attempted to conceal Defendants Bjorkman and Golden’s criminal conduct through the use of nondisclosure agreements.”
Inman contacted Golden, Bjorkman and Goff for comment. We will update this story if we hear back.
eXp spokesperson Jennifer Zimmerman told Inman in a statement that Bjorkman and Gordon were never employees of eXp.
“We take our responsibility to create a safe and inclusive environment very seriously,” Zimmerman said.
“EXp Realty has zero tolerance for any form of abuse, harassment or inappropriate conduct, including that of independent real estate agents who use our services. The charges in this case stem from alleged assaults by independent real estate agents who never Not an eXp employee – Once a plaintiff is brought to our attention, we proceed with the speed, seriousness and deep respect that is consistent with our values and the law. .
“eXp hopes and believes that the courts will grant plaintiffs a full and fair hearing as they pursue claims against the individuals who allegedly assaulted them. However, the allegations against eXp and its leadership have no basis in fact or law, and eXp vehemently denies them. The court dismissed some claims and we are prepared to pursue and defend our position on others.”
The case, filed in U.S. District Court for the Central District of California, is moving forward amid growing protests over sexual harassment in the real estate industry and calls for the National Association of Realtors to free women who come forward. A non-disclosure agreement (NDA) prevented them from speaking about their experiences, leading to sexual harassment accusations.
Compared to the earlier complaint, the second amended complaint adds more details about eXp’s revenue sharing plan and the extent of control Sanford and eXp have over Golden and Bjorkman.
this is in response to 85 pages January 29 ruling In it, Judge André Birotte Jr. said the plaintiffs “reasonably demonstrated a cover-up” and mostly denied the defendants’ motions to dismiss the case. Some claims barred by Nevada’s two-year statute of limitations were dismissed, as was a claim against Sanford and eXp, but Birotte said the plaintiffs could amend and refile their claims, which they did in a second amended complaint Done.
The claim alleges that Sanford and eXp were negligent in the hiring, retention and supervision of Bjorkman and Golden, but Birotte said the plaintiffs failed to provide specific facts proving that Bjorkman and Golden were employees of Sanford and not independent contractors.
The second amended complaint attempts to address this flaw by laying out the role of Sanford and eXp Realty in the eXp revenue-sharing plan, which the document calls “a multi-level marketing pyramid scheme that recruits participants for New agents provide financial incentives rather than rewards for participants”. Selling real estate” and needing to “constantly recruit new agents…otherwise it will collapse. “
The complaint alleges that Gove, Sanford and eXp “instructed, requested and provided” Bjorkman and Golden to provide “scripts, tools and training” on how to attract agents to the revenue-sharing program.
“Defendant eXp requires all of its agents, including Defendants Bjorkman and Defendant Golden, to comply with the eXp Agent Attraction Best Practices Guide, eXp Agent Attraction Success Strategies, and eXp Realty’s policies and procedures; Defendant eXp Realty controls all of its agents with regard to recruitment agent,” the complaint states.
“Defendants eXp Realty, Defendant Sanford and Defendant Gove exercised considerable control over Defendants Bjorkman and Defendant Golden, providing them with the means and means to recruit eXp’s agents,” the complaint adds.
According to the complaint, Gove, Sanford and eXp told Golden and Bjorkman that the key to agent recruiting “is projecting an image of success – both personally and professionally” and that eXp touted the wealth of its top recruiters to encourage more agents to join . Their shingles are on eXp.
“Defendant eXp Realty went to great lengths to showcase 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.
“This tactic has repeatedly shown top agents sharing photos of their yachts, planes, vacation properties, moving to compounds in Puerto Rico for tax purposes, and generally showing how much money they make each month as a result of their participation in the pyramid.”
The complaint alleges that eXp invites agents to events “in beautiful, exotic locations,” where they are able to “rubbish” top recruiters and “encourage them to build relationships with them and learn how to exploit and emulate them.” Recruiting skills perfected by eXp Realty executives.”
“Potential eXp Realty agents and agents looking to develop their downlines believe that in order to develop their professional networks and become successful eXp Realty agents like Defendants Gove, Bjorkman and Golden, they must “be in the room where it happens” “, associated with defendant eXp Realty’s agency influencers who frequently appeared on stage, promoted in online videos, were highlighted in its eXp Life magazine or otherwise prominently promoted on a regular basis,” the complaint states.
The plaintiffs allege that Gove “suggested, and still recommends to this day, that agents ‘share hotel rooms’ and encouraged parties, and he praised their pubs for stocking large amounts of alcohol.”
According to the indictment, Bjorkman and Golden secured the supply of “alcohol and drugs, including GHB, which is commonly known as a date rape drug,” and they would then “covertly provide narcotics to participants or deceptively induce them to They” were taking narcotics that would cause them to appear and act as if they were “attracted to Bjorkman, Golden and their friends” – thereby elevating defendants Golden and Bjorkman’s status at eXp – All in the name of appearing successful and therefore becoming a better recruiter. eXp Real Estate. “
Gordon and Bjorkman allegedly shared videos and photos of themselves drugging women, and Goff was “acutely aware” of the methods they used in their recruitment campaigns, the complaint said.
“Because Defendants Golden and Bjorkman’s success directly impacted Defendants Gove, Defendant Sanford and Defendant eXp Realty, they frequently assisted Defendants Golden and Bjorkman in projecting an image of success,” the complaint states.
“Defendants Gove, Defendant Sanford, and Defendant eXp Realty maintained and controlled the recruitment activities of Defendants Bjorkman and Defendant Golden sufficient to establish vicarious or vicarious liability under the Trafficking Victims Protection Reauthorization Act (TVPRA).”
EXp also faces another lawsuit from a female agent who claims Golden and Bjorkman drugged and sexually assaulted her, as well as a third lawsuit accusing eXp and team leader Chris Nevada of sexual harassment and retaliation.
A survey from New York Times, Research published in December found that eXp leadership sought to silence those who said they were under attack. In late January, the New York State Comptroller called on eXp to formally investigate sexual assault and harassment against women in its recruitment practices.
Read the second amended complaint:
Send an email to Andrea V. Brambila.
