In the aftermath of the devastating Pacific Palisades Fire, California Attorney General Rob Bonta is cracking down on alleged price-gouging activities by real estate professionals. On Tuesday, charges were filed against Beverly Hills real estate agent, Iman Eshaghyan, accused of bumping up rental prices by 30% during the disaster period. This move exceeded the state's legally set caps on such price increases following an emergency, as reported by LAist.
Under California Penal Code section 396, increases in rental prices beyond 10% during an emergency are prohibited. Yet, according to documents filed by the Attorney General's Office, Eshaghyan advertised and rented out properties at rates significantly above this threshold. If found guilty, the real estate agent could face a $10,000 fine and up to a year in jail, presenting a firm message to potential offenders. Eshaghyan declined to comment on the charges but has indicated that his attorney will be in touch, as covered by the Office of the Attorney General.
The alleged gouging followed an emergency declaration by Governor Gavin Newsom in January in response to the fires. The real estate market was already strained, and the actions of agents like Eshaghyan have added further pressure on families seeking housing in these troubled times. The case is not isolated, with Bonta previously filing charges against three other real estate agents earlier this year. According to a statement obtained by LAist, these agents have denied the charges.
For Californians who are currently encountering this type of alleged exploitation, Bonta has encouraged them to report such incidents to the authorities. Complaints can be made through the state's website or by calling a hotline, with the aim of halting unlawful pricing practices in their tracks. The California Department of Justice has also issued over 750 warning letters to entities accused of price gouging and maintains active investigations into related fraud and scams. More details on this enforcement action can be found in the complaint linked via the Attorney General's official website.
As the state rallies to protect those affected by fires, this legal action represents the firm stance California is taking against those accused of exploiting victims of natural disasters. It serves a clear warning that during an emergency, the community's welfare trumps profit margins.
