{"id":4685,"date":"2023-09-08T22:13:11","date_gmt":"2023-09-08T22:13:11","guid":{"rendered":"https:\/\/preprod.realtrends.com\/blog\/2023\/09\/08\/lawyer-letter-details-nars-internal-harassment-investigation\/"},"modified":"2025-03-13T02:52:52","modified_gmt":"2025-03-13T02:52:52","slug":"lawyer-letter-details-nars-internal-harassment-investigation","status":"publish","type":"post","link":"https:\/\/preprod.realtrends.com\/blog\/2023\/09\/08\/lawyer-letter-details-nars-internal-harassment-investigation\/","title":{"rendered":"Lawyer letter details NAR\u2019s internal harassment investigation"},"content":{"rendered":"\n

As Tracey Kasper, the National Association of Realtor\u2019s<\/a><\/strong> newly appointed president, put it, the trade group is \u201cgrappling with a very difficult situation.\u201d Kasper made the comment during a five-minute-long video message<\/a> to members and employees posted on Thursday.<\/p>\n\n\n\n

NAR\u2019s \u201cdifficult situation\u201d came into focus in June, when former NAR employee Janelle Brevard filed a lawsuit<\/a> accusing trade group of racial and sexual discrimination<\/a> and alleging that NAR president Kenny Parcell<\/a> harassed female employees. While Brevard settled the lawsuit roughly a week after filing it, receiving a $107,000 severance payment and inking a nondisclosure agreement from NAR, the trade organization\u2019s troubles didn\u2019t end there. In late August, the New York Times<\/a><\/strong> published an expos\u00e9<\/a> revealing sexual harassment allegations and a \u201cculture of fear\u201d at NAR, which ultimately led to Parcell\u2019s resignation.<\/p>\n\n\n\n

\n

In the wake of the bombshell story, NAR and its executives claimed to have no knowledge of widespread misconduct, with NAR CEO Bob Goldberg telling the Times that he \u201cwould not characterize [sexual harassment at NAR] as a problem.\u201d<\/p>\n\n\n\n

In addition, in a NAR Magazine article from August 10, 2023, titled \u201cNAR prioritizes a respectful workplace<\/a>,\u201d Goldberg is quoted as saying that the trade organization \u201cconsistently strives to improve our workplace for every employee, and we have a robust set of policies, protocols and training programs in place to help us maintain a positive, respectful working environment,\u201d and that NAR prides itself \u201con following the best governance practices in place throughout our nation, and we remain focused on fostering a culture that encourages our people to be heard and come forward if needed.\u201d<\/p>\n\n\n\n

The Polsinelli letter<\/h2>\n\n\n\n

However, a letter from Denise Drake<\/a>, an attorney at Polsinelli Law Firm<\/strong> to Goldberg from July 14, 2023, obtained by Inman News<\/a><\/strong>, casts doubt on NAR\u2019s timeline and commitment to cleaning up a toxic culture.<\/p>\n\n\n\n

The letter reveals that NAR initiated an investigation into the behavior of NAR staffers and executives. Polsinelli looked into allegations of misbehavior in 2022 and the claims raised by Brevard in her suit. Drake wrote that Polsinelli found evidence in 2022 that the organization\u2019s \u201chighest leaders\u201d engaged in \u201cdisrespectful\u201d and \u201ccreepy\u201d behavior. Drake\u2019s letter was sent two weeks after the Brevard suit was filed and a week after she voluntarily withdrew the case.<\/p>\n\n\n\n

The letter, which was published by Inman, appears to confirm that Polsinelli found evidence of past misbehavior among multiple leaders, despite NAR leaders making repeated statements downplaying any such problems at the organization.<\/p>\n\n\n\n

\u201cAs you know,\u201d Drake wrote in the letter, \u201cI found some issues raised last year were true. Those issues ranged from NAR\u2019s highest leaders being disrespectful, or lying about staff or members, to leaders being racially insensitive or engaging in sexual or \u2018creepy\u2019 communications or actions. Again, both female and male leaders were identified as having been involved in some of the allegations I found valid.\u201d<\/p>\n\n\n\n

Drake does not disclose the leaders who were involved or the allegations that she deemed \u201cvalid.\u201d<\/p>\n\n\n\n

However, in the letter, Drake states that based on her investigation, the allegations in the Brevard lawsuit were not true. She also claims that if the suit had continued, NAR would have been able to file legal documents that \u201ccast a different light on the allegations.\u201d Additionally, Drake notes that Brevard\u2019s claim that three other women made complaints about Parcell\u2019s behavior were inaccurate, stating that \u201cboth the number of women and the issues were false.\u201d<\/p>\n\n\n\n

Since the letter was sent to Goldberg, more than two dozen other women have come forward with allegations of misconduct.<\/p>\n\n\n\n

According to the letter, NAR tried to support Parcell, with Drake writing that she exchanged counsel emails with NAR\u2019s legal executives \u201cstrategizing ways to support Mr. Parcell, not just NAR,\u201d as she and NAR\u2019s legal team worked to ensure \u201cthat we came up with creative ideas in support of NAR and Mr. Parcell, well beyond what other organizations or companies typically allow.\u201d<\/p>\n\n\n\n

Parcell maintained in his resignation letter that the allegations against him were \u201ccategorically false.\u201d<\/p>\n\n\n\n

According to the letter, Drake believed that the Brevard lawsuit and the allegations it made against NAR and Parcell would be short lived.<\/p>\n\n\n\n

\u201cUnless you have leaders gossiping,\u201d Drake said in the letter, \u201cstirring up problems, or allowing others to gossip and stir up problems, this issue should go away quickly for NAR and Mr. Parcell.\u201d<\/p>\n\n\n\n

In the letter, Drake also praised Goldberg and NAR for implementing new policies and procedures to combat harassment and she states that NAR took \u201cdisciplinary or other action with specific individuals.\u201d Drake did not name the individuals who were disciplined.<\/p>\n\n\n\n

NAR not giving up on Goldberg<\/h2>\n\n\n\n

In the wake of the scandal, NAR has thrown its support behind Goldberg. In a statement dated September 1, 2023, confirming that a rumored emergency meeting<\/a> had in fact taken place earlier in the week, Kasper wrote: \u201cThe consensus among the Executive Committee is we need to rebuild trust with staff and members with meaningful change. The Executive Committee agreed we have a shared purpose and are united in support of our staff and that includes Bob.\u201d<\/p>\n\n\n\n

Goldberg is currently set to retire<\/a> at the end of 2024, closing out his 30-year career at the trade group.<\/a><\/p>\n\n\n\n

In a video message on Thursday, Kasper reiterated that NAR acknowledges that it must rebuild trust between itself and its members and staff.<\/p>\n\n\n\n

\u201cIt’s upsetting to hear that some members and staff have not felt safe or respected and I want you to know that I hear you,\u201d Kasper said.<\/p>\n\n\n\n

Kasper, a Boise, Idaho-based agent who’s been in the group’s leadership circle for years, said NAR would \u201cdo and be better\u201d in the future, noting that NAR is \u201cgoing to engage outside experts to assess the way reports of misconduct are investigated and resolved.\u201d<\/p>\n\n\n\n

She also told members that NAR is going to evaluate how leaders are selected, as well as how they interact with staff. Kasper, however, did not discuss findings from past investigations into misconduct and states that NAR has only recently launched investigations due to \u201crecent reports\u201d of sexual harassment, which appears to contradict what Drake wrote in her letter.<\/p>\n\n\n\n

The NAR Accountability Project<\/h2>\n\n\n\n

For many industry professionals, NAR\u2019s response to this scandal has been far from adequate. On the Monday after the publication of the Times<\/em> expos\u00e9, Jason Haber, Compass<\/strong> agent<\/a> from Manhattan, started a Change.org petition<\/a> calling for Parcell\u2019s dismissal. By Wednesday, this effort had morphed into the NAR Accountability Project<\/a>. <\/p>\n\n\n\n

Last Saturday, a week after the Times\u2019 story ran, Haber created another petition calling for the resignation Bob Goldberg and other NAR executives.<\/p>\n\n\n\n

In a statement on Change.org<\/a> outlining the NAR Accountability Project\u2019s four point plan, Haber wrote, \u201cAs a member of this coalition and someone who has closely followed the revelations about NAR’s workplace culture, I am deeply disturbed about what has been revealed.   It is disheartening to see an institution that should be promoting professionalism and integrity in real estate instead perpetuating an environment where women feel unsafe. It is time for use to take action. We cannot stand idly by while countless individuals suffer from these injustices. We must demand accountability from NAR’s leadership and push for immediate changes that will protect their employees’ well-being while restoring the association’s good name.\u201d<\/p>\n\n\n\n

In addition to the resignation or dismissal of Goldberg and others, the plan calls for all former employees and independent contractors to be released from non-trade secret NDAs, for NAR to retain an independent law firm to conduct \u201ca sweeping and comprehensive internal investigation,\u201d and for NAR to implement a third party HR reporting system.<\/p>\n\n\n\n

The petition had over 300 signatures as of Friday afternoon.<\/p>\n\n\n\n

Restoring trust<\/h2>\n\n\n\n

In an emailed statement to HousingWire, Kasper wrote that NAR acknowledges not enough has been done to restore members\u2019 and staffers\u2019 trust in the organization.<\/p>\n\n\n\n

\u201cThe leaked memo was shared with NAR\u2019s Executive Committee and Past Presidents right after the Janelle Brevard lawsuit was filed and subsequently withdrawn. At the time, we had been advised by outside counsel that the allegations against the sitting president, while disturbing and unprofessional, did not rise to the level of unlawful conduct and corrective action had been taken with him. It was also indicated that there had been no further reports of misconduct since that action,\u201d she wrote. <\/p>\n\n\n\n

\u201cWe are focused on making meaningful change with urgency and intent to create an environment that promotes accountability and transparency. We have engaged external culture experts to evaluate our existing policies and protocols and help our organization continue to improve and evolve. In everything we\u2019re doing to move forward and address needed changes, I believe we are on the right path to do better in leadership decision-making and in listening to and supporting our members and staff,\u201d she concluded.<\/p>\n<\/div><\/div>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

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