Ex-City Real Estate Adviser Sues State Real Estate Agency

The ex-city real estate adviser at the center of the city’s 101 Ash St. debacle is fighting the state Department of Real Estate’s move to revoke his real estate license.  

La Prensa San Diego was first to report this week that prominent commercial real estate broker Jason Hughes filed a lawsuit in San Diego Superior Court appealing state Real Estate Commissioner Chika Sundquist’s decision to pull his license. Sundquist overruled an administrative law judge’s earlier recommendation of a $4,000 fee. 

Refresher: Hughes pleaded guilty to a single misdemeanor conflict-of-interest charge last year, months after the revelation that the city’s 101 Ash St. landlord paid him $9.4 million for his work on two city lease deals. Hughes had previously argued he was not covered by the state’s premier conflict-of-interest law and that he  told multiple city officials he wanted to be paid. He later repaid the $9.4 million to the city. In a proceeding last year, Hughes testified that the criminal investigation and civil cases tied to the 101 Ash deal hurt his family and tarnished his reputation, and that he was unfairly targeted. The criminal misdemeanor charge was formally expunged earlier this month. 

Why the commissioner says she’s revoking the license: “(Hughes’) lack of acceptance or responsibility for his conviction and claim that his conviction is wholly unrelated to his license does not assure the department that the public will be protected granting continued licensure to respondent as a real estate broker,” Sundquist wrote in her March 28 order.  

The revocation is for now set to take effect Friday. 

Hughes’ legal move: The suit Hughes filed earlier this week seeks a court order to dismiss or set aside Sundquist’s decision. It also requests a stay amid Hughes’ appeal. 

Hughes’ take: In a statement, Hughes spokesperson Steven Goldberg deemed Sundquist’s decision “grossly unfair” and a “blatantly unjustified use of political power.”  

“As Mr. Hughes has adamantly maintained all along, he did nothing wrong and acted transparently and in good faith to support the City of San Diego during a time of significant uncertainty and urgent need,” Goldberg wrote in a statement. “Furthermore, he has had a distinguished real estate career spanning more than 35 years and has never had a single legal issue before this.” 

Goldberg also wrote that the final decision won’t have a “practical impact” on Hughes’ firm, Hughes Marino, as the company’s real estate license in California is not in his name though Goldberg said Hughes continues to have a senior role overseeing the company’s offices. 

What DRE says: A spokesperson for the Department of Real Estate said earlier this week that it doesn’t comment on pending litigation – and that it’s moving forward with revoking his license effective Friday. 

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