Several agents at Corcoran Global Living have accused CEO Michael Mahon of fraud, breach of contract, and delinquency of hundreds of thousands of dollars in fees amid turmoil in the franchise.
The delays began in April, an agent for Corcoran’s biggest franchise told Inman, joining three lawsuits filed this year to provide details. difficult financial situation During his tenure as Chief Executive Officer of Mahon.
In September, Jesse Rodriguez and other brokers who franchise Mahon filed a lawsuit against the CEO.the broker claimed fraud and breach of contractThis includes misrepresenting the company’s financial situation, mixing funds from Southern and Northern California offices, and diverting money to himself and his associates.
One person Inman contacted echoed allegations set forth in the lawsuit that the franchise’s headquarters apparently failed to pay utility bills and rent in some area offices, and that the lights were turned off.
The franchise’s COO explained the agent’s compensation issue in line with market conditions and claimed the finance team was working to resolve the issue.Corcoran did not respond to Inman’s request for comment. , noted that the company’s affiliates are independently operated and owned.
Mahon himself sued Corcoran through an LLC in June, claiming the parent company provided incomplete transaction reporting technology that cost affiliates hundreds of thousands of dollars. Corcoran countersued, saying the lawsuit was a “smoke screen” to distract from the fraud committed by Mahon and his company.
The report comes after a senior executive within the company said: real Corcoran was shopping with a franchise Less than three years after its inception, the company has emerged from two years of aggressive growth. If no external buyer can be found, the parent company is willing to execute direct deals.
of Franchises joined in February 2020 When San Francisco company Zephyr Real Estate merged with Nevada-based Oliver Luxury Real Estate. We started expanding shortly after that and acquired several companies in the following months. Corcoran Global’s headcount has skyrocketed from his 450 at the start to his over 1,000 brokers.
The affiliate, recently plagued by rumors that it was on the verge of going out of business, numbered 80 offices in its original April 13 to April.
— Holden Walter Warner