A former Hawaii real estate mogul, Stephen Cipres, is embroiled in legal battles alleging he used client properties for a four-year affair with his assistant. Cipres, who founded Corcoran Pacific Properties, is accused of engaging in sexual encounters with employee Sarah Dombrose in 10 to 20 homes he was hired to sell, according to court documents.
Dombrose claims the relationship began non-consensually when Cipres allegedly kissed her without consent at an open house and coerced her into sexual relations to protect her job and income. She testified that she felt obligated to comply due to her precarious financial situation and fear of losing employment. Cipres, however, asserts the relationship was consensual and that Dombrose initiated their first intimate encounter. He countersued Dombrose for defamation, accusing her of falsely claiming coercion.
The saga has resulted in multiple lawsuits. Dombrose's estranged husband, Matthew Gillespie, is suing Cipres for alienating his affections and causing emotional distress, naming Corcoran Pacific and The Corcoran Group as defendants. A judge dismissed Gillespie's claim for alienation of spousal affection but allowed other claims to proceed. Gillespie's attorney argues that The Corcoran Group was aware of the allegations for two years and failed to act.
Corcoran Pacific has since severed ties with Cipres. Principal agent Paul Roy stated that Cipres was given an ultimatum to resign or be terminated after admissions were made in deposition testimony. Roy expressed disappointment for the brand, agents, and clients who expected professional conduct.
Cipres allegedly never used hotels or his own properties for the encounters, instead reportedly using towels from clients' linen closets. Dombrose stated she felt like a sex worker due to the nature of the encounters, which she described as occurring multiple times a week during business hours, often before or after open house events or in parked cars.
Cipres has not faced disciplinary action regarding his broker's license, which remains valid, according to the Hawaii Department of Commerce and Consumer Affairs. He has since launched his own brokerage and continues to sell high-value properties. Lawyers for The Corcoran Group have sought to keep deposition transcripts sealed, citing concerns about direct quotes from sealed testimony, but Cipres's request to seal the transcripts was denied. Cipres continues to operate his own real estate brokerage.