Just when you thought you had heard it all!
If only part of thiis information is correct, one would have to believe there are issues here.
Illegal? Based on your information, it's difficult to percieve what actually happened but without a doubt there appears to be sufficient information to contact the agent's broker/manager and present their concerns before taking it to the local board of realtors for their review and recommendation.
As always, if you feel that something illegal has taken place, you are always best advised to contact an attorney.