A SoCal landlord and a real estate agent are facing charges of price gouging a wildfire victim. California Attorney General Rob Bonta announced the charges yesterday following an investigation. The victim reportedly was forced to evacuate due to the Eaton Fire last month. Following that deadly fire and the one in the Palisades, Governor Gavin Newsom signed an emergency order extending protection for essential services against price gouging for a year in Los Angeles County.
The charges reportedly were filed last Friday in L.A. County Superior Court against landlord Edward Kushins and agent Willie Baronet-Israel. Bonta says the defendants increased the rental price by 36% on a rental home in Hermosa Beach, which exceeded the 10% limit, violating California law. If convicted, they face a $10,000 maximum fine and the possibility of 12 months in jail.
Also, Bonta says the California Department of Justice has sent more than 700 warning letters to hotels and landlords who have been accused of price gouging. In addition, his office has more active criminal investigations into price gouging underway.
Thousands lost their homes in the disastrous wildfires. That put even more pressure on the Southland’s tight housing market. This resulted in a surge of price gouging complaints. Bonta is urging the public to report price gouging to local authorities or to his office at oag.ca.gov/report or by reaching out on a hotline at (800) 952-5225.
Rental price gouging on the rise
Meanwhile, the Los Angeles City Attorney’s Office has just filed a lawsuit against the worldwide rental apartments agency Blueground US Inc. The lawsuit cites multiple cases of price gouging, including one apartment in downtown Los Angeles where the company allegedly raised rent by more than 30%, from $4,140 a month to $5,400.
Days after the wildfires, Burbank sent out a notice about a rash of complaints and concerns it was receiving about rental price gouging. According to the notice, “The City Attorney’s Office is prepared to fully prosecute any such crimes and hold violators accountable. Should you believe price gouging is occurring, please retain receipts, invoices, and/or any other records detailing the incident.”
