After real estate adviser Jason Hughes pleaded guilty to a criminal conflict-of-interest charge for accepting almost $10 million in fees while representing the city of San Diego in lease negotiations for two downtown properties, state regulators sought to revoke his license.
The California Department of Real Estate accused Hughes of violating state regulations and said he should no longer be permitted to broker real estate deals.
“The underlying facts include but are not limited to (Hughes), an appointed city adviser, participating in the making of a contract with the city of San Diego in which he personally profited,” the state said at the time.
“This crime is substantially related to the qualifications, functions or duties of a real estate licensee,” regulators added.
Hughes fought the state action, filing a lawsuit against the Department of Real Estate. A judge later agreed to stay the revocation of his license until further evidence could be presented.
Now state officials and the city’s adviser in the notorious 101 Ash St. lease have reached a deal that allows Hughes to keep his license on a restricted basis. He agreed to pay fines totaling $8,500 and is eligible to apply for an unrestricted license after one year.
Hughes also will comply with a continuing education requirement imposed by regulators.
“If respondent fails to satisfy this condition, the commissioner may order the suspension of the restricted license,” the stipulation states.
He further agreed to notify the state real estate commissioner within three days if he is arrested or charged with a new crime. Failure to inform the commissioner would constitute a new violation of the restricted license.
Attorneys for Hughes declined to comment on the agreement, which was first reported by the Voice of San Diego.
Hughes was the only person charged criminally by District Attorney Summer Stephan following a long investigation into the city’s acquisition of the 101 Ash St. office tower and a nearby property called the Civic Center Plaza.
He agreed to plead guilty to a misdemeanor charge and return $9.4 million to the city as part of a 2023 settlement with the District Attorney’s Office. He also paid a $400 fine and served one year of summary probation.
In 2016, based on a recommendation from then-Mayor Kevin Faulconer, the San Diego City Council approved a 20-year lease-to-own deal for the former Sempra Energy headquarters on Ash Street.
The building has been unsafe to occupy due to asbestos and other issues for all but a few weeks since.
In 2022, Mayor Todd Gloria recommended the city buy out the Ash Street and Civic Center Plaza leases for 100 cents on the dollar. The City Council approved the settlement on a split vote.
The city and a private developer are now working to convert the 19-story office tower into residential housing.
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