California Attorney General Accuses Real Estate Agent of Price Gouging
This week, charges were brought against a realtor from La Canada for reportedly increasing the rental price of a property.
Kobeissi operates his business just 7 miles east of Altadena in Los Angeles County, where the Eaton Fire on January 7 resulted in at least 17 fatalities and nearly 9,500 homes being destroyed. Although the fire is still active, it was reported to be 95 percent contained by Thursday after affecting 14,021 acres.
Bonta alleges that Kobeissi raised the rent of a home when a couple attempted to lease it. The complaint claims that Kobeissi violated California Penal Code section 396, which safeguards citizens against price gouging during emergencies.
A representative from Kobeissi’s real estate firm described a news report concerning the charges as “false” on Thursday but did not provide further details.
On January 7, Governor Newsom declared a state of emergency in Los Angeles and Ventura counties.
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In an executive order dated January 12, the California governor suspended the existing time limits under section 396 and extended the price gouging prohibitions until January 7, 2026, specifically for Los Angeles County.
The attorney general asserts that the couple attempted to rent a home after the governor’s emergency declaration came into effect.
According to Bonta’s office, the couple was allegedly notified that the rental price soared by 38 percent after they submitted an application.
“They chose not to proceed with renting the house due to the price hike,” Bonta’s office stated in a press release.
California’s penal code forbids price increases exceeding 10 percent limit, or more than 10 percent of the seller’s total cost plus the customary markup before the state of emergency.
If convicted, penalties could include up to one year in prison and a maximum fine of $10,000, as stated by the attorney general.
The California Department of Justice has issued 500 warning letters to hotels and landlords accused of price gouging since the onset of the fires, according to Bonta’s office.
Bonta’s office is collaborating with district attorneys, city attorneys, and other law enforcement agencies in Southern California to launch further criminal investigations into price gouging practices, he added.
Homeowner David Marquez, left, uses a metal detector as his father, Juan Pablo Alvarado, right, and a friend search for remnants of gold jewelry and other silver items within the walls of their family home following the Eaton Fire, Sunday, January 19, 2025, in Altadena, Calif.AP Photo/Damian Dovarganes
“As I have emphasized continuously, price gouging must come to an end,” Bonta declared on Wednesday. “We are fulfilling our commitment to hold those who engage in price gouging accountable, with more actions to follow.”
Bonta also encouraged the public to report any suspected incidents of price gouging to local authorities or his office.
