State regulators' fight to revoke Ash Street broker's license postponed until February – San Diego Union-Tribune

The convicted real estate agent who convinced a San Diego Superior Court judge to stop state regulators from revoking his license — at least for now — has until early next year to prepare his case.

Jason Hughes, who pleaded guilty last year to a minor conflict of interest violation and agreed to repay San Diego millions of dollars for his role in two suspect city lease deals, is suing the California Department of Real Estate over plans to revoke his brokerage license.

Three months ago, shortly before the revocation was to take effect, Judge Carolyn M. Caietti ruled that Hughes could keep his license while the revocation case was heard in state court.

After a status conference in the case last week, the judge issued a schedule dictating when each side must file its various motions. Filings are due in January and early February, and the dispute is expected to be decided late next winter.

Hughes served a year of probation and paid a $400 fine after pleading guilty to two leases he negotiated on behalf of the city about a decade ago.

He was also ordered to repay the $9.4 million in fees he received for his work in the city's acquisition of the Civic Center Plaza office tower and the nearby high-rise at 101 Ash Street. He later had his criminal record expunged.

Hughes was the only person charged over the Ash Street lease, which cost taxpayers more than $200 million for a building that remains uninhabitable due to asbestos and other problems.

After Hughes pleaded guilty to the misdemeanor, state real estate regulators attempted to revoke his license on the grounds that he had improperly profited from his work for the city.

An administrative law judge initially recommended that Hughes be fined $4,000 for representing multiple parties in the transaction, but the then-director of the state's Department of Real Estate later ruled that Hughes should lose his license for so-called dual agency.

Hughes said he told at least six San Diego city officials that he wanted to seek compensation for his work related to the two leases, citing a letter he sent to the then-director of the real estate department, which she accepted and signed.

Nevertheless, state regulators declared that this work was not permitted.

Last year, his broker's license was officially revoked, but Hughes repeatedly appealed the decision. Just days before the revocation was due to take effect, he challenged the decision in the Supreme Court and obtained a stay.

“This is an urgent circumstance,” the judge ruled. “I think it is important to maintain the status quo at this point. I do not believe the public interest will suffer if the suspension of the license revocation continues.”

The attorney representing the state took a different view.

“A delay is absolutely against the public interest,” Deputy Attorney General Andrea Schoor-West said in court earlier this year. “To date, he has failed to take responsibility for his actions.”

Even if the state succeeds in stripping Hughes of his license, the downtown San Diego brokerage firm he co-founded will likely continue to operate. Hughes Marino and his many brokers hold numerous licenses that allow them to provide real estate services in California.