This week, California Attorney General Rob Bonta accused real estate agent Iman Shaghyan of raising the rental price of a home in Beverly Hills by almost 30% in the days following the fires on January 7. Since price-gouging regulations that forbid rent increases of more than 10% following a natural disaster were into effect, this is the fourth charge Bonta has brought.
In a news release, Bonta stated that it is unlawful to take advantage of Californians’ suffering by price gouging and that she would not tolerate it.
As thousands of complaints poured in in the weeks following the fires, city officials promised to crack down on offenders; some organizers even created spreadsheets showing the soaring rates. His office has mostly targeted real estate agents, and Bonta has recruited groups of attorneys to review complaints.
The charges filed, however, only reflect a small portion of the complaints filed with the city and state, according to some critics who argue that government authorities aren’t doing enough to confront the widespread price gouging that spread throughout the region following the fires.
Chelsea Kirk, a co-founder of the activism group the Rent Brigade, stated that more work has to be done. Rent gouging is no longer a top priority, and public authorities and the media have stopped talking about it.
According to Kirk’s company, which searches Zillow for instances of price gouging, there are presently over 10,000 active listings that meet the criteria. Transparency is an issue since nobody knows exactly what is being looked at, according to her team, which submits weekly reports to government authorities.
Her team then collaborated with L.A. City Councilmember Hugo Soto-Martnez to create a resolution that, if approved, would mandate that L.A. City Attorney Hydee Feldstein Soto submit monthly reports that include information on the overall quantity of price-gouging complaints received, the response times, and the enforcement measures taken. Despite being introduced, the motion has not yet been added to the agenda.
According to Kirk, there is a complete lack of urgency.
Along with Shaghyan, Bonta also charged La Ca ada agents Mike Kobeissi of Flintridge and Lar Sevan Chouljian of Glendale in January. He accused Edward Kushins, the property’s landlord, and Hermosa Beach agent Willie Baronet-Israel in February.
Every one of the four cases is ongoing. The maximum punishment for the misdemeanor is a year in prison and a $10,000 fine, if found guilty.
State Department of Justice officials claimed they had issued over 750 warning letters to hotels and landlords who are suspected of price gouging in addition to the accusations. Additionally, the government is looking into frauds, fraud, and lowball offers on houses that have burned down.
Feldstein Soto is bringing legal action on behalf of the city, while Bonta is conducting an investigation on behalf of the state. She hasn’t only been going after real estate brokers thus far.
Citing over ten instances of price gouging, Feldstein Soto’s offices sued rental giant Blueground in February. In one case, on January 7, the day of the fires, Blueground allegedly increased the rent of an apartment in downtown Los Angeles by 56%.
The office of Feldstein Soto filed a $62 million lawsuit against a group of houses and businesses in March, claiming that they had violated the city’s short-term rental legislation, which prohibits rentals like Airbnbs, in addition to price-gouging. Akiva Nourollah, Micah Hiller, Haim Amran Zrihen, Rachel Florence Saadat, Hiller Hospitality, Hiller Hospitality Group, 1070 Bedford, Red Rock, and Coastal Charm were among the defendants, along with four homeowners and five limited liability organizations.
Except for Zrihen and Saadat, whose contact details could not be found and who did not get any on-the-record comments, The Times contacted each of the people accused of price gouging or short-term rental offenses.
Based on reports of price gouging, Feldstein Soto’s office sent out over 250 cease-and-desist letters to property management organizations, owners, and landlords in the initial weeks following the fire.
Rules on price gouging will end on July 1.
