Morro Bay real estate agency and broker charged with fraud, lose their licenses
July 5, 2022
By KAREN VELIE
State officials recently revoked the license of a Morro Bay real estate company that provides property management services in San Luis Obispo County, citing failure to pay landlords owed for rent collected.
The state revoked Seaside Real Estate’s license in May. The California Department of Real Estate cited negligence, incompetence and willful disregard of real estate laws, some of which date back to 2015.
Following customer complaints that Seaside Real Estate’s then-owners Don Hudson and his wife Sheri Hudson cheated on their clients, the state audited the company’s finances for 2015 and 2016 and found multiple violations. Accounts receivable were $187,763 short as of October 2016, according to the Department of Real Estate.
Don Hudson mixed up accounts, failed to place accounts in trusts as required by law, and transferred $18,000 to one of his personal accounts, a state charge alleges. Additionally, as an unlicensed and unsecured person, Sheri Hudson was not legally authorized to sign client accounts.
Less than a year after the state filed its indictment, in 2018 Don Hudson voluntarily surrendered his broker’s license. Shortly thereafter, he transferred ownership of Seaside Real Estate to his daughter, Marissa Hudson.
After Marissa Hudson failed to provide Adam Sevim, the owner of three units in Morro Bay, with $13,800 for rent collected in February and March 2019, Sevim filed a lawsuit with the state.
The Department of Real Estate then conducted another audit and, like her father, the state determined that Marissa Hudson had acted with negligence, incompetence, and willful disregard for real estate laws.
While the Department of Real Estate files charges and revokes licenses, local district attorneys are responsible for prosecuting real estate fraud and embezzlement.
On June 3, 2019, Sevim filed a lawsuit against Don Hudson, Marissa Hudson, and Seaside Real Estate for withholding his rental payments.
Late last year, Marissa filed a lawsuit against her parents, challenging ownership of a residential property in Atascadero.
Earlier this year, Marissa quit working at the Seaside Real Estate office. She did not return multiple requests for comment.
On May 14, the state revoked Marissa’s broker’s license and Seaside Real Estate’s license.
While he reportedly shorted their accounts receivable, Don Hudson seemed fully committed to drag racing. He owns several dragsters, a special trailer for cars and a mobile shop, according to his Facebook page.