
Homeowner Takes Legal Action
A Miami homeowner, Michael Ammann, has filed a federal lawsuit against eXp Realty and several of its top executives, accusing them of fraudulent conduct, conspiracy, and negligence.
The suit was submitted to the U.S. District Court and names key figures from eXp World Holdings, including CEO Glenn Sanford, eXp Realty’s CEO Leo Pareja, COO Patrick O’Neill, and General Counsel James Bramble.
Allegations of Misconduct
Ammann, who is representing himself in this matter, claims that eXp Realty instructs its agents not to engage in home repairs or renovations on properties they are involved with, pointing out that such dual roles can lead to conflicts of interest.
However, he argues that an eXp agent, Megan Featherston, violated this policy by acting both as an agent and as a contractor on properties connected to him.
In the lawsuit, Ammann cites eXp’s own policy that forbids agents from conducting any repairs on properties involved in transactions they are handling, regardless of whether they have contractor licenses.
Before resorting to legal actions, Ammann reportedly attempted to address his concerns regarding Featherston’s behavior through various formal complaints.
These included informing her managing broker, Sarah Ford, on May 31, filing a report with the compliance department on July 31, and reaching out to Sanford, Pareja, O’Neill, and Bramble on November 4.
He even submitted a detailed affidavit on November 18 to underscore his concerns.
Claims for Damages
Ammann contends that the misleading practices and misrepresentations regarding policy enforcement have resulted in damages exceeding $700,000.
He further claims that the defendants collaborated to conceal these fraudulent actions, obstructing investigations and neglecting their compliance duties.
According to Ammann, they had a responsibility to reveal Featherston’s misconduct, a duty they failed to fulfill.
He is requesting a jury trial and seeking compensation for his losses, with the possibility of the award being tripled.
Additionally, Ammann demands injunctive relief that would require the defendants to publicly acknowledge their violations and conduct independent compliance audits over the next two years.
Legal analysts emphasize that it is common for real estate brokerages to prohibit their agents from also serving as contractors in transactions they handle.
Such regulations are typically laid out in the firm’s Independent Contractor Agreement.
As of now, eXp Realty has not made any comment regarding the lawsuit.
Source: Housingwire