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Days after the San Diego Association of Realtors (SDAR) was sued for alleged retaliatory firings of executives who claimed an ex-CEO was stealing association funds, the organization’s new chief has promised he is taking the situation seriously and is “committed to defending” SDAR’s interests.
Cory Shepard
The comments came from Cory Shepard, who stepped into the CEO role following Mike Mercurio’s ouster — an executive shakeup which happened this spring but which was not widely publicized until last week. In a letter posted over the weekend, Shepard said he was “both humbled and honored” to take the reins at SDAR.
Regarding allegations against Mercurio, Shepard said “we take such matters seriously and are committed to defending the organization’s interests within the confines of the law.”
“We have faith in our legal system and trust that justice will prevail,” Shepard continued.
Shepard declined to further weigh in on the controversy, instead saying in the letter that legal and ethical obligations prevent SDAR from disclosing personal information or discussing the case.
Michael Mercurio
Four former executives filed the case against SDAR last week. In the complaint, the former executives say that while serving as CEO, Mercurio stole more than $1 million in association funds. Among other things, the complaint accuses Mercurio of artificially inflating his vacation time then cashing that time out, of buying expensive items with SDAR money then selling them on eBay, and of not providing receipts for big-ticket purchases.
The complaint also suggests Mercurio may have charged SDAR for his daughter’s private school tuition.
The former executives claim that when they raised concerns about Mercurio’s spending they were fired in retaliation.
In a statement provided to Inman by the former executives’ attorney, they describe Mercurio’s actions as “blatant theft” and “unethical behavior.” They also accuse SDAR’s board of being “complicit in this activity” and of “targeting the four of us through a pointed and direct investigation of us.”
“We were inappropriately treated in a hostile and bullying manner, and we were retaliated against and wrongfully terminated for our commitment to do what was right and protect the organization,” the statement adds.
The suit lists SDAR, Mercurio and various unnamed individuals as defendants and seeks compensation for what the former executives describe as wrongful termination.
News of the suit first surfaced Thursday, when local station CBS 8 covered the story. One day later, SDAR confirmed that it had cut ties with Mercurio and appointed Shepard. SDAR later clarified that those changes happened in the spring, and were announced via email to association members, though it didn’t say why there was no public statement on Shepard’s appointment until last week.
Though Shepard did not comment on the case in his new letter, he did say that “moving forward, my vision is to strengthen the bond between our members and the association, reinforcing the spirit of unity, collaboration, and innovation, that has defined us throughout the years.”
“Together,” he added, “we will overcome challenges, seize opportunities, and continue to make a meaningful difference in the lives of our members and the industries we represent.”
Update: This story was updated after publication to reflect new information SDAR provided about the timeline of Mercurio’s ouster and Shepard’s appointment.
