Hughes Marino: Settles Conflict Case for $9.4M (2024)

Jason Hughes, the CEO and founding member of Hughes Marino, a well-known corporate commercial real estate brokerage company with headquarters in San Diego, entered a plea deal for a crime involving an agreement of interests.

The defendant was found guilty of providing advice to the city over the purchase of two office buildings in the center of downtown while receiving payment from the seller.

Hughes was compensated by the city for his services as an independent advisor through the sale of Civic Center Plaza and 101 Ash St.

The concerned party has agreed to pay $9.4 million to the San Diego municipal authorities as well as a $400 financial fine levied by the legislature.

CoStar claims that this information was made public following the prosecution’s presentation, during which they made accusations against him related to potential conflicts of interest.

The Entire Story of Hughes Marino

Hughes Marino: Agreeing to a Conflict of Interest Allegation, a real estate advisor involved in the Ash Street Deal

The real estate adviser for the 101 Ash Street and Civic Center Plaza buildings, who facilitated the lease-to-own agreements between the city of San Diego and these buildings, has admitted guilt to a felony charge of conflict of interest.

The defendant has agreed to pay back the city’s former landlord more than $9.4 million as part of the plea deal.

The San Diego City Council voted 7–2 in support of a resolution to accept a settlement agreement involving Jason Hughes, who consented to repay the money he had received from the property owner, Cisterra Growth, for his involvement in orchestrating the transactions, shortly after the plea agreement was made.

Hughes says he informed six high-ranking city officials that he wanted payment for his services, but prosecutors and city authorities insist he was given the money under the pretense of being an unpaid advisor.

The agreement that was made this past week calls for the city to drop its lawsuit against Hughes.

In addition, it has been determined not to press any criminal charges against him other than one offense.

According to the allegation, Hughes violated Government Code Section 1090, which prohibits anyone volunteering for government positions or holding elected office from having financial interests in the addresses they enable.

Hughes won’t have to serve any time behind bars. The plea agreement includes a one-year probationary period and a requirement for the offending party to reimburse the city with $9,433,872.30.

It is important to highlight that situations involving conflicts of interest are usually settled through civil or administrative fines rather than being brought to trial.

No charges have been brought against any of the other parties involved in the case. Stephan claims that a review of Cisterra’s participation in the deal was done.

Stephan added, though, that Hughes told Hughes that the local officials were aware of his upcoming payment.

If there are no charges in a case, it does not necessarily mean that the parties involved did not act inappropriately. Stephan claims that the comment suggests that there isn’t enough evidence to prove guilt beyond a reasonable doubt at this point.

However, we dutifully took responsibility for our actions and carefully reviewed every avenue of communication to determine whether there is any reasonable doubt that Cisterra and Hughes Marino were not conspirators.

A spokesman for Jason Hughes and his company, Hughes Marino, claimed in a news release released after the city council’s vote that Hughes diligently strived to support the city of San Diego despite significant uncertainty and urgent municipal requirements.

The declaration went on to say that while Jason had originally intended to present a strong defense in court, he has since decided that it would be more beneficial to settle all of the accusations made against him because of the high costs and ongoing disruptions that come with protracted legal proceedings.

Jason plans to dedicate his whole focus and available resources to Hughes Marino’s continued national success, his family, and the San Diego community.

The 101 Ash Tower was built in early 2020, however, problems including radon violations soon followed, forcing city employees to relocate.

A $132 million financial transaction was made possible by a settlement agreement that enabled the transfer of property ownership to the municipality. The CCP property received $46 million of the $86 million allotted for the 101 Ash site.

Furthermore, Cisterra is being asked to reimburse the city for about seven million dollars in earnings that were made from their lease-to-own arrangement at the 101 Ash location.

The agreement made it easier for Cisterra to keep the $6.2 million in profits from a similar deal involving Civic Center Plaza.

About Marino Hughes? 

Through its participation in a significant number of initiatives, Hughes Marino, a well-known business property consulting firm, has helped various organizations successfully implement commercial real estate strategies.

According to Hughes Marino, the area of specialization is owner-user acquisitions and representation of tenants in lease negotiations and organization. You can click this link to find out more about him: Hughes Marino 

The Bottom Line 

The owner of Hughes Marino and a well-known real estate broker, Jason Hughes, has acknowledged his guilt for a misdemeanor offense involving an illegal conflict of interest.

As a result, he faces severe financial penalties of $9.4 million, which must be paid to the city. In addition, he has to pay the government a financial penalty of $400.

This case emphasizes how important it is for the real estate industry to act ethically and transparently, especially when it comes to circumstances involving the welfare of others and the distribution of government funds.

The statement emphasizes how important it is for real estate brokers to maintain the highest ethical standards to maintain trust and their good name in the market.