Within the submitting, Davis and Herfel declare {that a} Keller Mortgage worker accused John Keller of sexual misconduct, and that the allegations had been then lined up by the corporate’s basic counsel Stacie Herron. In accordance with the submitting, Gary Keller gave the accuser $1 million of his personal cash to pay her off after which gave Herron a $1 million bonus and a promotion to interim COO for finishing up the alleged cowl up. 

Davis’ personal authorized battle along with his former employer started due to sexual misconduct allegations made in opposition to him by Inga Dow, the CEO of varied Keller Williams places of work, in 2022, three years after he left the agency. Davis sued in an try and clear his identify. The lawsuit was dismissed after going into arbitration in March 2023. 

Davis then filed a racketeering lawsuit in opposition to Keller Williams in August 2023 and refiled in December 2023. The go well with makes claims of monetary impropriety in opposition to Gary and John Keller, former KW president Josh Crew, Enterprise MAPS Ltd., Enterprise MAPS Administration LLC, 72Sold, Johnathan Dupree, Marc King, Jason Abrams, Matt Inexperienced, William Soteroff, KWx, Livian and KW Southwest Area as defendants. In accordance with the preliminary grievance, after franchisees signed a contract, the defendants then required franchisees to undertake KWRI’s current market cap, which is the payment brokers pay to their market facilities. Davis alleges that these charges went to growing expertise charges and the acquisition of “unneeded items and companies” from KWRI-owned and affiliated firms, resembling MAPS coaching and training.

The most recent slate of allegations take issues a step additional, claiming that Gary Keller, John Keller, Stacie Herron, Josh Crew and Mark Willis “misappropriated, diverted and embezzled” hundreds of thousands in charges by means of KWx. Moreover, the plaintiffs allege that Crew acquired $10 million in kickbacks, and that Mary Pfluger, Gary Keller’s spouse, gave Jonathan Dupree, the southwest regional director, an off-the-books examine for agreeing to the market cap reduce directive given by Gary Keller. 

Along with these allegations, the submitting additionally notes that the events haven’t been capable of agree upon an arbitrator. 

In a reply temporary, attorneys from Akin Gump Strauss Hauer & Feld, the counsel for the defendants, claimed that the plaintiffs are utilizing the courtroom and public filings “to pursue their private vendetta and disparaging marketing campaign in opposition to Defendants should finish.”

“The courtroom has ordered arbitration two occasions, and Plaintiffs have circumvented these arbitration orders and proceed to refuse to resolve their disputes in personal, confidential arbitration regardless of representing to the Courtroom that they might achieve this,” the reply states.

Each events have continued their posturing, with Keller Williams’ authorized staff asking the courtroom to withdraw the arbitration demand and strike it from the courtroom document, which the plaintiffs have agreed to do after an arbitrator is chosen. The defendants’ counsel has additionally filed a movement asking the courtroom to carry Davis in contempt resulting from alleged efforts to mislead the courtroom. 

On Tuesday, the events filed a joint standing report, notifying the courtroom that they’d exchanged names of further Texas arbitrators, however to this point have been unable to come back to an settlement on an arbitrator. 

If the events are unable to agree on which arbitrator to make use of, they stated that they count on to submit a proposed course of for arbitrator choice for the choose to nominate an arbitrator. 

“That is yet one more try by Mr. Davis, by means of unfounded and sensational allegations beneath the guise of a authorized submitting, to proceed his public smear marketing campaign in opposition to Keller Williams and its management,” Darryl Frost, a spokesperson for Keller Williams, wrote in an e-mail. “These unfaithful private assaults characterize an ongoing effort to generate consideration for his baseless and false claims. Whereas we proceed to handle this matter by means of the correct authorized channels, our focus stays on working our enterprise.”