Morro Bay real estate agency and broker accused of fraud, lose licenses

July 5, 2022

Don and Marissa Hudson at a drag race in Bakersfield

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 a failure to pay money owed to property owners for rents collected.

The state revoked Seaside Real Estate’s license in May. The California Department of Real Estate cited negligence, incompetence and willful disregard for real estate laws, some of which dates back to 2015.

Following client complaints that the then-owners of Seaside Real Estate, Don Hudson and his wife Sheri Hudson, were cheating their clients, the state audited the company’s financials for 2015 and 2016 and found multiple violations. Client accounts were short $187,763 in Oct. 2016, according to the Department of Real Estate.

Don Hudson commingled accounts, failed to place accounts into trusts as required by law and transferred $18,000 to one of his personal accounts, according to a state accusation. In addition, as an unlicensed individual without a bond, Sheri Hudson was not legally permitted to be a signer on the client accounts.

Less than a year after the state filed its accusation, in 2018, Don Hudson voluntarily surrendered his broker’s license. Shortly afterwards, 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, $13,800 for rents collected in February and March 2019, Sevim filed a complaint with the sate.

The Department of Real Estate then conducted another audit, and like her father, the state determined Marissa Hudson acted with negligence, incompetence and willful disregard for real estate laws.

While the Department of Real Estate files accusations and revokes licenses, local district attorneys are responsible for prosecutions of 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 suit against her parents, contesting ownership of a residential property in Atascadero.

Earlier this year, Marissa stopped working in the Seaside Real Estate’s office. She has not returned multiple request for comment.

On May 14, the state revoked Marissa’s broker license and the license for Seaside Real Estate.

Don Hudson and pit crew

While allegedly shorting their client accounts, Don Hudson appeared fully engaged in drag racing. He owns several dragsters, a special trailer for the cars and a mobile shop, according to his Facebook page.


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IDBOUND

Racing in any form can develop into a mental illness. Drug or alcohol addiction , Gambling etc etc are comparable to Owning racecars or racing in general .Racing may have helped develop the greed and inability to operate the Hudson’s business . Or they just didn’t care about their clients and knew they might possibly not face any retribution .


unusualsuspect

These are wholly unsupported “facts” about racing lol.


blackjack

Racing or any other form of competition aren’t the problem. This situation comes down to will power, morals, and the ability to live within a budget ( three things that should be taught from a young age, rather than the constant stream of celebrating mediocrity drivel shown today in so many agenda driven advertisements, as well as by the mainstream media in general).


Jorge Estrada

The questions continues to linger, do you trust someone else to manage your money? For construction, agriculture, real-estate and even the sale of gasoline, the answer has been no and it is never 100% the other person’s fault.


As for your tax dollars, most don’t really care based on how our elections go. The fix is make enough money to painlessly throw some away, just like the drug dealers. Very Sad.