Douglas Elliman, Former Executive Settle Rival Lawsuits

Legal sparring over kickback allegations and a raft of other accusations between Douglas Elliman and its former Portfolio Escrow President William Grasska have ended in settlements.

A pair of October lawsuits filed in Los Angeles Superior Court — one with Grasska suing Douglas Elliman and the other with the brokerage suing the escrow executive — are on track for dismissal after each party filed settlement notices in court on Dec. 17.

Attorneys for each plaintiff will still need to file paperwork within 45 days of their respective settlement dates to request approval for dismissal, according to court filings.

Douglas Elliman declined comment on the settlement notices.

“With the news of today’s public filings, I am proud to state that throughout my career, I have consistently operated my businesses and personal dealings with the utmost ethical and moral standards,” Grasska said in a statement to The Real Deal. “I continue to hold licenses through the [Nationwide Mortgage Licensing System] and [California Department of Real Estate], as well as approval by the Department of Financial Protection and Innovation.”

Details of each settlement are not public and Grasska declined to comment on the specifics.

“Any differences between Douglas Elliman, Portfolio Escrow and I have been resolved,” Grasska’s statement further stated.

Grasska runs Riviera Financial Partners and Aspen 1031 Exchange as CEO. The serial entrepreneur most recently started Beverly Hills-based Ravello Escrow, which he also helms as CEO.

The executive added: “I firmly believe that one’s reputation and legacy are everything, and I am committed to ensuring my name remains synonymous with integrity and excellence.”

Rival lawsuits

This week’s settlements come after the legal drama erupted in October.

Grasska filed a lawsuit on Oct. 14 against Douglas Elliman and Portfolio Escrow, the firm he started and later sold to the brokerage. His complaint also named as defendants escrow officers Melinda Topete and Renee Mills, Elliman’s financial LLC and the brokerage’s Western Region CEO Stephen Kotler and COO William Begert. The complaint accused them of retaliation, breach of contract, negligence and defamation.

Wrapped up in Grasska’s lawsuit were allegations Portfolio Escrow provided marketing services to agents in what would be a violation of the Real Estate Settlement Procedures Act. The lawsuit also cited an instance where an escrow manager was “asked to inflate a closing statement” that boosted the amount of commission earned by the Altman Brothers Team at Douglas Elliman. Matt and Josh Altman are not named as defendants in Grasska’s complaint.

The brokerage returned fire at Grasska with a lawsuit on Oct. 23. Douglas Elliman of California and Portfolio Escrow filed the lawsuit against Grasska, accusing the escrow executive of breach of contract, embezzlement, misappropriation of trade secrets, negligence and fraud.

The two firms accused Grasska of working with former Portfolio employees and an unnamed “high-profile Los Angeles real estate broker” on reality TV to pay the broker a kickback cut of escrow fees, amounting to more than $100,000.

A report from Inman this month identified the anonymous broker as “Selling Sunset” star Jason Oppenheim.The broker denied any wrongdoing to TRD in response to the report and said it was “ridiculous” to characterize the arrangement he had with the escrow company as a “scheme.”