Re/Max investigation finds founder and CEO both violated ethics code

Founder Dave Liniger and CEO Adam Contos failed to disclose $2.4M loan used to purchase a residence, according to special committee

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Ending an internal investigation first announced in November, a special committee has found that Re/Max founder Dave Liniger and CEO Adam Contos broke the company's code of ethics by failing to disclose to the Re/Max board of directors a $2.4 million loan Liniger gave to Contos for the purchase of a residence. The committee appointed to look into the arrangement found no "credible" evidence to show that Liniger and Contos' non-disclosure was intentional, however. At the center of the investigation was the purchase of a $2.4 million residence by Contos, recently named the company's sole CEO as Liniger moved into the role of non-executive chairman, “at a below-market interest rate,” and the exchange of both cash and non-cash gifts. Re/Max executives are prohibited from receiving or arranging loans of any kind from inside the company, and employees found guilty of violating the provision can be subject to immediate termination, according to the Re/Max Code of Ethics and Bu...