38% Rent Increase Sparks Outrage: Real Estate Agent Accused of Price Gouging After Eaton Fire

A real estate agent is facing criminal charges for allegedly attempting to exploit fire victims by increasing rental prices after the Eaton Fire, California authorities announced.

Mike Kobeissi, a real estate agent in La Canada Flintridge, was charged with misdemeanor price gouging after he reportedly raised the rental price of a property by more than 10% on January 11, just days after Governor Gavin Newsom declared a state of emergency on January 7 to protect victims of the fire. This occurred under the California law that prohibits price gouging during declared emergencies.

The investigation into Kobeissi began after a couple, who had lost their home in the fire, filed a complaint with the California Department of Justice (DOJ) when they applied to rent a home but were informed that the price had been increased by 38%. The couple ultimately decided not to proceed with renting the property due to the steep price hike.

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State Attorney General Rob Bonta emphasized that the DOJ has been actively addressing these incidents, issuing over 500 warning letters to landlords and hotels accused of price gouging. “Price gouging will not be tolerated, and we are committed to holding those who seek to take advantage of disaster victims accountable,” Bonta said. “This case is a reminder that we will take action against anyone attempting to profit off of others’ suffering.”

Price gouging violations can lead to criminal prosecution, including up to a year in county jail and a fine of up to $10,000. Additionally, offenders could face civil penalties of up to $2,500 per violation and be required to pay restitution.

Anyone who believes they have encountered price gouging can report it to the DOJ at oag.ca.gov/LA fires or call 800-952-5225.

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Lailyah Duncan

Lailyah Duncan is an insightful writer at The Chieftain Spear, where she explores themes of culture, resilience, and community through compelling storytelling. Passionate about bringing diverse perspectives to light, Lailyah's work reflects a deep commitment to empowering voices and fostering meaningful conversations. With a talent for weaving narrative and purpose, she continues to inspire her readers with thought-provoking articles that celebrate heritage and advocate for positive change.

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