By Robin GOLDSWORTHY and Mary O’KEEFE

California Attorney General Rob Bonta on Jan. 22 announced the filing of charges against a real estate agent for attempting to price gouge a couple who lost their home in the Los Angeles Eaton Fire. This investigation began when a complaint was filed with the California Dept. of Justice (DOJ) after the couple tried to rent a home after the Governor’s Emergency Order went into effect, which protects fire victims from price gouging. As part of Attorney General Bonta’s work to protect Californians following the Southern California wildfires, DOJ also sent 500 warning letters – and counting – to hotels and landlords who have been accused of price gouging. In addition, the office has more active criminal investigations into price gouging underway, according to a statement from California Attorney’s office.
The real estate agent was identified in reports as La Cañada Flintridge realtor Mike Kobeissi. 

According to Bonta’s statement, the investigation revealed that the couple applied to rent a home that was listed for $8700 per month but after the application was received were informed that the price increased by approximately 38% to $12,000. They decided to not rent the house due to the increase in price. 

According to Kobeissi, who does not own the house, the rent for the house was increased to current comparable levels. He stated that the situation was “a misunderstanding.” 

However, the state limits rent increases to 10%; the price had been raised over the 10% limit laid out in Penal Code section 396 and a charge was filed against Kobeissi that carries a potential penalty of $10,000 (maximum fine) and the possibility of 12 months in jail. 

Currently the house is being rented for $9570 per month.

“The owner of the house, in consideration of the loss of the home in the Eaton Fire, offered a free month of rent plus the use of furniture that was stored on the property,” Kobeissi said.

 An arraignment date is currently set for Tuesday, March 4, according to Bonta’s office. 

On Jan. 27 Bonta announced the filing of charges against another real estate agent, Lar Sevan Chouljian, alleging she attempted to price gouge a family who was evacuated due to the Los Angeles Eaton Fire. This investigation was the result of review of complaints received by the California Dept. of Justice (DOJ). 

The investigation revealed that after being evacuated due to the Eaton Fire, the family began searching for rentals through their real estate agent and inquired about renting a Glendale home. Chouljian offered the family a new price that exceeded the listing price by more than 50%, which is in excess of the 10% limit laid out in Penal Code section 396.

DOJ has opened several active investigations into price gouging as it continues to ramp up deployment of resources to Los Angeles County to investigate and prosecute price gouging, fraud, scams and unsolicited low-ball offers on property during the state of emergency. 

A website – oag.ca.gov/LAFires – has been launched by Bonta’s office that provides information about how to get help with housing, financial assistance and insurance claims, and for other important resources as well as a place where consumers can file complaints regarding price gouging.