California Attorney General Rob Bonta announced the first filing of charges against a real estate agent over alleged price gouging related to Los Angeles County’s Eaton Fire.
According to a statement from Bonta’s office, a couple filed a complaint was filed with the California Department of Justice after they tried to rent a home following Gov. Gavin Newsom’s Jan. 7 Emergency Order to protect fire victims from real estate price gouging. The couple applied to rent a home, but after their application was received they were informed the price increased by 38%. The couple opted not rent the house due to the increase in price.
Bonta’s office stated the price being raised over the 10% limit laid out in Penal Code section 396, a charge was filed that carries potential penalty of a $10,000 maximum fine and the possibility of 12 months in jail. The real estate agent was not identified by Bonta’s office, although media reports identified him as Mike Kobeissi of Kobeissi Properties, who denied the accusations of price gouging and insisted the property’s owner reduced the rental price to accommodate wildfire victims to accommodate the wildfire victims now living there.
“They got it completely wrong – the home was rented within the law limits and they think somehow that it was rented higher,” Kobeissi said in a statement to Newsweek. “Tenants are very happy how the owner helped them with price reduction.”
