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Published on January 24, 2025
Southern California Real Estate Agent Charged With Price Gouging Post-Eaton FireSource: advokatsmart.no, CC BY 2.0, via Wikimedia Commons

In the wake of the Eaton Fire crisis, California Attorney General Rob Bonta has leveled misdemeanor price gouging charges against Southern California real estate agent Mike Kobeissi. The agent allegedly hiked the rent of a house in La Canada Flintridge by 38% following the Governor's emergency order aimed at protecting fire victims from such exploitative practices. The complaint that sparked the investigation was filed with the California Department of Justice, as reported by ABC7.

It has been revealed that Kobeissi increased the rental price "unlawfully," which was advertised, offered, and charged, far exceeding the 10% cap stipulated under the governor's order. The couple who filed the complaint chose to not rent the property due to the exorbitant price increase. Attorney General Bonta has vowed to aggressively and relentlessly continue to pursue and prosecute those trying to illegitimately profit from the tragedy. "As I have said repeatedly, the price gouging must stop. Today, we are making good on our promise to hold price gougers accountable, with more to come," Bonta said, as stated by the Attorney General's Office.

Alongside the single criminal charge, the DOJ has also issued about 500 warning letters to hotels and landlords implicated in similar unethical practices. With a broader lens on the fallout from the Eaton Fire, these efforts form part of a concerted campaign by state officials to shield victims from exploitation and to enforce legal boundaries firmly. Found in violation of the Penal Code section 396, price gougers could face a fine of up to $10,000 and/or up to 12 months in jail, along with possibly being subject to civil enforcement actions.

The Attorney General's office has accentuated the importance of reporting incidents of price gouging to local authorities or directly to the DOJ through their dedicated website or hotline. "May this announcement serve as a stern warning to those who would seek to further victimize those who have lost everything," Bonta told the Attorney General's Office, underlining the resolve to bring justice to the victims. Active investigations remain ongoing, and DOJ continues to respond to the needs of Los Angeles County and other areas affected by the wildfires.