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This story was updated on Nov. 12, 2024 with a comment from a representative for Tal and Oren Alexander, and from a Side representative.
In a new legal action against the embattled Alexander brothers, white-label firm Side has filed a temporary restraining order against Tal and Oren Alexander, accusing them of moving the underlying collateral on a loan that the firm extended to Official Partners two years ago.
The temporary restraining order asks that Tal and Oren Alexander, as well as Official Partners New York, be prevented from “selling, transferring, dissipating, or otherwise disposing of any of Defendants’ real property or any of the collateral” on the loan extended by Side, Housing Wire reported.
Side is alleging that the restraining order is warranted because “the Alexanders have moved the collateral in violation of the note and security agreement and refused to identify where the collateral is located, raising legitimate concerns that defendants are in the process of dissipating the assets constituting” the loan, the legal action states.
The extent of the loan is unclear since details have been redacted from Side’s legal filing. The Alexanders and Official Partners have been summoned to court, but have not filed anything in the case yet.
An attorney for the Alexanders, James Cinque, told Inman in an emailed statement that the partnership with Side turned sour over time.
“Side, Inc. induced the founders of Official Partners to leave their positions and ‘partner up with them,'” Cinque told Inman in an email.
“These founders were not just top producers at Elliman for three consecutive years — they were [some of the top] agents in the country, joining Side as its flagship partner in good faith. But then Side pulled the plug, withheld earned commissions, and is now aggressively trying to turn its investment into callable debt. Not exactly the partnership we signed up for.”
Meanwhile, a representative for Side told Inman that the white-label firm was “simply seeking repayment for money owed.”
“We are confident in our case and we will let the merits of that case speak for themselves in the court of law,” the Side representative said.
The action is a continuation of a legal battle Side waged against the Alexanders in October, suing them for breach of contract and alleging that the brothers failed to pay back a promissory note and uphold a security agreement with Side that dates back to August 2022.
The complaint states that Official Partners agreed to pay Side the principal sum of a redacted amount, plus interest, as outlined in terms that were agreed upon in the note. The complaint also says that the Alexanders also signed the note as guarantors.
When Inman reported on the lawsuit in October, the Alexanders’ lawyer, James Cinque, said that Official had “never missed a payment” and that the suit was a “greedy attempt by Side to take over the business of Official Partners.”
The legal actions come during a tumultuous period for Oren and Tal Alexander, who within the last several months became the recipients of multiple lawsuits alleging that they had sexually assaulted and raped women, dating back to at least 2010.
After the lawsuits were filed against them, dozens of women came forward to lawyer Evan Torgan, who is representing alleged victims Kate Whiteman and Rebecca Mandel, making similar accusations of assault. High-performing Douglas Elliman agents Tracy Tutor and Jessica Cohen also both told The New York Times that they believed they had been drugged by one or both of the brothers.
As accusations mounted, Tal and Oren distanced themselves from Official as the firm’s other cofounders — Nicole Oge, Andrew Wachtfogel and Richard Jordan — attempted to chart a new path for the brokerage. However, negotiations with the brothers fell through, and Oge, Wachtfogel and Jordan decided to forfeit their ownership in the company and officially left the firm on Aug. 15.
Tal and Oren Alexander were affiliated with Douglas Elliman for 10 years before breaking off on their own to launch Official in 2022. In recent months, as more allegations against the brothers became public, leadership at Douglas Elliman, particularly former Douglas Elliman Inc. Chairman, CEO and President Howard Lorber, came under scrutiny with new questions raised about the state of the company’s culture.
Following an internal investigation, Douglas Elliman suddenly announced Lorber’s retirement, which was later uncovered by The Wall Street Journal to have been pressured by Douglas Elliman’s board. Just days after Lorber retired, the firm’s brokerage CEO and President, Scott Durkin, was also terminated.
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