@Stuart Udis You are an attorney , correct ? 

Quote from @Manuel Angeles: Consult an attorney.

I ALWAYS recommend having a local attorney review any lease doc you plan on using.

Call your ATTORNEY ! 

Their E&O insurance should cover this.You may need to file something with the local or state Board of Realtors and attorney general.

Per our attorneys, when we transfer SDs we require:1) Explicit written directions from owner on where to transfer, including name, mailing address and/or ACH payment info.2) Owner MUST sign a Hold Harmless Agreement, so we will be relieved of all legalities regarding SD after transfer.If an owner refuses to cooperate with our requirements, we will refund the SDs to tenants and send owner proof.Otherwise, we can send to owner of their new PMC.NOTE: we also are concerned about your new PMC allowing you to hold SDs!

Does anyone have a good recommendation for a real estate attorney (specializing in business formation and/or asset protection) and CPA in the Bay Area?

Yeah, check that fine print and maybe consult an attorney to see if there’s a contract violation that can get you out. 

Marco,I'm extremely close with a RE attorney who got a template off the internet and then customized it. 

Hire an attorney and have the tenants evicted.