Hamptons real estate brokers confirm federal probe

Federal investigators have been making inquiries into the real estate industry on the East End, according to at least one East Hampton broker and a Hampton Bays market research firm that claims larger agencies shut out competition from smaller companies.

Joe Kazickas, founding partner of broker Rosehip Partners Llc, said the Department of Justice contacted him a couple of weeks ago "wanting to know how the real estate market operates in the East End." Kazickas said he is scheduled to speak with Justice Department representatives next week.

Justice Department spokeswoman Gina Talamona declined to comment Tuesday.

A second broker declined to be quoted on the record, according to The Associated Press, saying he was not sure he was authorized to speak to the media, but confirmed that Justice Department investigators had interviewed him as well.

In March 2009, George Simpson, president of Suffolk Research Service Inc., filed a lawsuit against more than 20 agencies in the Hamptons and an online listing service they belong to, claiming that Hamptons Real Estate Online stifles competition by charging prohibitive fees.

Simpson said he was interviewed several weeks ago by the Justice Department. "They asked me what I knew about things," he said.

Hamptons Real Estate Online, or HREO.com, bills itself as "the only comprehensive" portal for real estate in the Hamptons, the North Fork and Shelter Island. The website listed more than 8,000 homes for sale from nearly 60 brokerages as of Tuesday.

A phone call and e-mail to the company were not immediately returned Tuesday.

Simpson dropped his suit in August 2009 while pursuing "other alternatives."

One group of defendants said in court papers that Simpson's complaint was "self-refuting and completely devoid of meaningful allegations."

Simpson said, "I haven't given up. This is a very big matter, one that involves a huge amount of damages."