The former CEO of the San Diego Association of Realtors (SDAR), Mike Mercurio, has been accused of embezzling over $1 million from the organization in a lawsuit filed earlier this week, by four former high-level executives, as reported by CBS 8. This is the same Mike Mercurio-led Greater San Diego Association of Realtors that received prestigious "Diamond" Commercial Services Accreditation from the National Association of Realtors just months ago in November 2022, according to Times of San Diego.

The lawsuit comes amidst troubling accusations in another case reported by Inman in March 2022, where a former staffer of the trade group alleged that the organization used illegal means to "extort" agents into contributing to a political action fund. Now, with the shadow of embezzlement and fraud allegations looming, the once well-respected organization faces immense scrutiny.

According to the embezzlement lawsuit, detailed by CBS 8, Mercurio allegedly collected hundreds of thousands of dollars in unearned vacation pay, made tens of thousands of dollars in purchases on association credit cards, which were then posted on eBay and deposited into his personal bank account. The association, funded by annual dues from approximately 20,000 members, reportedly saw more than a million dollars in member dues diverted from lobbying efforts into the pocket of the former CEO.

The plaintiffs in the case claim they were fired without cause after discovering and investigating Mercurio's alleged long-running embezzlement scheme. While the association's board agreed to pay for an independent investigation in late 2022, the plaintiffs say Mercurio and others continued to retaliate against them until their termination in April 2023.

These recent allegations come after a separate lawsuit filed in March 2022, as reported by Inman, in which Mark Cowan, formerly membership and compliance officer for the Greater San Diego Association of Realtors, accused the trade group of using illegal means to extort agents and force them to contribute to the National Association of Realtor's controversial political action committee (RPAC). The lawsuit alleges that Mercurio added a mandatory fee to the association's quarterly multiple listing service fee in 2021 against the advice of his legal team, causing anger among many of the association's members.

As the legal battles unfold, the Greater San Diego Association of Realtors lingers in turmoil, despite its recent recognition as a distinguished organization within the industry. The "Diamond" Commercial Services Accreditation - likely unaware of the legal issues bubbling up within the organization - praised the group for its efforts in carrying out commercial real estate programs and was seen by many as an indication of the association's commitment to providing comprehensive support and services to its members, as noted by Times of San Diego.

In light of the serious allegations of embezzlement, fraud, and misconduct now facing Mike Mercurio and as a result, the Greater San Diego Association of Realtors, it will be the task of new management to help the once-respected organization regain its footing and rebuild its relationship with its members and the wider real estate community.