California Attorney General Rob Bonta announced the sentencing of a real estate agent for price gouging related to Los Angeles County’s Eaton Fire.
According to a statement from Bonta’s office, Mike Kobeissi of Kobeissi Properties was sentenced to 12 months of probation, 100 hours of community service, and a mandatory professional ethics course through the National Association of Realtors. Additionally, he must pay $20,000 to a disaster relief fund and submit a letter of apology to the victims.
The California Department of Justice filed charges after a complaint by an evacuated couple applied to rent a home listed by Kobeissi. Once the application was received, the couple was informed the price was hiked by 38%. They decided not to rent the house due to the price increase.
California’s Penal Code section 396 generally prohibits charging a price that exceeds, by more than 10%, the price a seller charged for an item before a state or local declaration of emergency.
Kobeissi is the first real estate agent to be sentenced for wildfire-related price gouging.
“As I have said repeatedly, price gouging during a state of emergency is illegal,” said Bonta. “May this announcement serve as a stern warning to those who would seek to further victimize those who have lost everything. My office is aggressively and relentlessly pursuing those who are trying to make a quick buck off someone else’s pain.”
Photo courtesy of Kobeissi Properties
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