A Compass broker faces allegations of illegally accepting kickbacks from a mortgage lender and attorney in exchange for client referrals, according to a whistleblower lawsuit obtained by The Real Deal.
Ben Lalez is accused of violating federal anti-kickback laws by steering clients to specific service providers in exchange for undisclosed cash payments.
The suit, filed in January by his former transaction manager Claude Cimino, claims Lalez retaliated by firing him after he reported the alleged scheme.
The complaint alleges that Lalez received cash payments for referring clients to a particular lender and attorney, violating the Real Estate Settlement Procedures Act, or RESPA.
Payments were allegedly omitted from tax filings while clients were reportedly unaware of the referral arrangements. Cimino claims he was terminated six months after objecting to the practices, according to The Real Deal.
Cimino also alleges that Lalez admitted the firing was retaliation in a written note, though the document has not yet been entered as evidence.
The plaintiff, who joined Lalez’s team in May 2021, is reportedly seeking at least $50,000 in damages, back pay with interest and potential reinstatement to his former position.
A case management hearing is scheduled for April 24.
