State investigates Marcus Millichap

TRD New York /
Feb.February 25, 2009 05:30 PM

The New York Department of State, the agency that licenses and oversees real estate brokers, opened an administrative investigation today into Marcus & Millichap Real Estate Investment Services, in response to accusations of fraudulent and sham sales in a lawsuit filed in California earlier this month.

The investigation was a preliminary action to determine whether there was cause for bringing any formal charges against the California-based company or its brokers, said Daniel Shapiro, the department’s first deputy secretary of state.

“An investigative file was opened today… against the licensee, which is the company,” he said but would not provide more detail. According to the Department of State, a brokerage company itself is licensed, as are individual brokers and salespersons.

An investigation could determine there was no wrongdoing, or it could find that punishments ranging from license suspension, revocation, reprimand or a fine up to $1,000 were warranted, Shapiro said.

The Real Deal reported on Monday that New York-based Glen Kunofsky, senior vice president of investments, was one of 10 Marcus & Millichap brokers accused in a California civil lawsuit of conducting fraudulent sales in New York and three other states. The lawsuit also names the company and two other businessmen.

Y. David Scharf, an attorney acting as personal counsel for Kunofsky, said he was not aware of the Department of State investigation, but said the California lawsuit was baseless.

“We believe it has no merit and will be subject to dismissal. Mr. Kunofsky expects to vigorously defend each of the real estate transactions,” he said.

An official with Marcus & Millichap did not immediately respond to a call for comment.


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

From left: Simon Baron Development's John Simon, TF Cornerstone's Frederick Elghanayan, and MaryAnne Gilmartin (Credit: Getty Images)

Plaxall joins planning group for post-Amazon development

Inside Berkshire Hathaway’s tri-state expansion strategy

Inside Berkshire Hathaway’s tri-state expansion strategy

220 Central Park South and 960 Fifth Avenue with Aerin Lauder (Credit: Getty Images, Warburg Realty)

Who bought the priciest pads in Manhattan last month?

Cristiano Moura (Credit: Christie’s Real Estate and iStock)

Viral Instagram post leads to arrest, assault charge for former Christie’s agent

Amazon CEO Jeff Bezos and Hudson Yards (Credit: Getty Images and Wikipedia)

Amazon takes big new office space near Hudson Yards

arrow_forward_ios