LA real estate agent charged for price gouging amid California wildfires
California Attorney General Rob Bonta filed charges Wednesday against a local real estate agent for attempting to "price gouge" a couple who lost their home in the Los Angeles Eaton Fire.
According to Bonta's office, so far more than 500 warning letters have been sent to hotels and landlords accused of price gouging amid the deadly, ongoing wildfires ravaging Los Angeles County. At least 28 people have died as multiple wildfires, fueled by severe drought conditions and strong winds, rage across Southern California as the new Hughes fire grows. Thousands of structures have been burned and thousands of families have been displaced.
"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," said Bonta in an online statement. "May this announcement serve as a stern warning to those who would seek to further victimize those who have lost everything. DOJ is aggressively and relentlessly pursuing those who are trying to make a quick buck off of someone else's pain."
According to the complaint, a couple applied to rent a home after Gov. Gavin Newsom declared a state of emergency. After their rental application was received, they were told that the price had increased by 38% and they decided not to rent the home because of the price increase.
California law prohibits raising the price of an item by more than 10% of its price before a state or local declaration of emergency.
An analysis of data obtained by ABC News found nearly 400 listings with prices that appear to have spiked after the fires.
Only items that a vendor began selling after an emergency declaration can be raised up to 50% more. Price gouging prohibitions are in place until at least March 8, 2025, according to an executive order from Newsom.
According to Bonta's office, the criminal prosecution of price gougers can result in a one-year imprisonment and/or a fine of up to $10,000.
ABC News has reached out to the real estate agent listed in the complaint, Mike Kobeissi, for comment.
Bonta urged the public to report instances of price gouging to the AG's office.
ABC News' Jill Castellano contributed to this report.
