Real estate agent accused of price gouging, increasing rent by 38% following Eaton Fire​on January 24, 2025 at 2:21 am

LA CANADA FLINTRIDGE, Calif. (CNS) — A real-estate agent is facing a criminal charge for allegedly attempting to price gouge a couple who lost their home in the Eaton Fire, officials announced.

The investigation into Mike Kobeissi began when a complaint was filed with the California Department of Justice after the couple tried to rent a home after the governor’s emergency order, which protects fire victims from price gouging, went into effect on Jan. 7, state Attorney General Rob Bonta said.

The DOJ has also sent at least 500 warning letters to hotels and landlords who have been accused of price gouging. In addition, the office has more active criminal investigations into price gouging underway, Bonta said.

California Attorney General Rob Bonta is expected to hold a news conference about efforts to crackdown on price gouging after the Los Angeles fires.

“As I have said repeatedly, the price gouging must stop,” the AG said in a statement. “Today, we are making good on our promise to hold price gougers accountable, with more to come. I have been urging the public to report any such incidents to local authorities, or to my office. … 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.”

Kobeissi was charged in Superior Court with misdemeanor price gouging on Tuesday after having allegedly “unlawfully raised the rental price advertised, offered, and charged” for housing in La Canada Flintridge to prospective tenants by more than 10% on Jan. 11, days after Gov. Gavin Newsom issued the state of emergency declaration.

The investigation allegedly revealed that the couple applied to rent the home, but that after the application was received, they were informed that the price increased by 38%, according to Bonta.

The couple decided not to rent the house due to the price increase.

Violators of the price gouging statute are subject to criminal prosecution that can result in one-year imprisonment in county jail and/or a fine of up to $10,000. Violators are also subject to civil enforcement actions including civil penalties of up to $2,500 per violation, injunctive relief, and mandatory restitution, according to the DOJ.

To report possible price gouging, visit oag.ca.gov/LAfires or call 800-952-5225.