Price gouging (Photo – Graphics Dept.)
A La Cañada real estate agent has been charged with misdemeanor price gouging after allegedly attempting to overcharge a couple who lost their home in the devastating Eaton Fire.
By Rena Kurlander
The charges come after a complaint was filed with the California Department of Justice (DOJ), following an investigation that revealed the agent raised rental prices significantly after the governor’s emergency declaration.
Mike Kobeissi, a local real estate agent, is accused of unlawfully raising the rental price of a home in La Cañada Flintridge by more than 10% on January 11, just days after Governor Gavin Newsom issued a state of emergency to protect fire survivors from price gouging. Seeking a place to rent after losing their home in the fire, the couple applied for the property but were informed that the price had increased by 38% after their application was received.
The couple ultimately chose not to rent the property due to the price hike. State Attorney General Rob Bonta condemned the act, emphasizing that price gouging would not be tolerated, especially in the wake of such a tragic disaster.
“As I have said repeatedly, the price gouging must stop,” Bonta stated in a release. “DOJ is aggressively and relentlessly pursuing those who are trying to make a quick buck off of someone else’s pain.”
Kobeissi was formally charged with misdemeanor price gouging on Tuesday. Violators of California’s price gouging laws face criminal prosecution, which could result in up to a year in county jail and/or fines of up to $10,000. Civil penalties, including fines of up to $2,500 per violation, could also apply.
The California Department of Justice has already sent over 500 warning letters to hotels and landlords suspected of price gouging, with additional criminal investigations underway.
Kobeissi is scheduled for arraignment on March 4. The DOJ encourages the public to report any suspected price gouging incidents related to the fires by visiting their website: oag.ca.gov/LAfires, or calling their hotline at 800-952-5225.
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