A real estate agent who tried to price gouge a couple who lost their home during the Los Angeles wildfires was sentenced for false advertising.
California Attorney General Rob Bonta announced the sentencing of real estate agent Mike Kobeissi for false advertising, which arose arising out of an attempt to price gouge a couple who lost their home in the Eaton Fire.
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Kobeissi’s sentence includes 12 months of probation, 100 hours of community service and a mandatory professional ethics course through the National Association of Realtors. He was ordered to pay $20,000 to a disaster relief fund and write an apology letter to his victims.
Airbnb faces a lawsuit by the city of Los Angeles, which accused the home rental company of price gouging during the L.A. wildfires.
The California Department of Justice filed charges against Kobeissi following an investigation following a consumer complaint sent to DOJ by the couple, who had been evacuated and were attempting to rent a home after an emergency order from the governor took effect. The order prohibited price gouging of wildfire victims.
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The DOJ investigation showed the couple applied to rent a home listed by Kobeissi, but after the application was received, they were informed that the price rose by 38%. They decided not to rent the house due to the price increase.
California law prohibits charging a price that exceeds the price a seller charged for an item before a state or local declaration of emergency by more than 10%. For items that a seller began selling after an emergency declaration, the law prohibits charging a price that exceeds the seller’s cost of the item by more than 50%. This law applies to those who sell food, emergency supplies, medical supplies, building materials and gasoline. It also applies to repair or reconstruction services, emergency cleanup services, transportation, freight and storage services, hotel accommodations and long- and short-term rental housing.
Top photo: Crews sift through damages from the 2025 Eaton Fire. Photo by CalFire.
Topics California Catastrophe Natural Disasters Agencies Wildfire Louisiana
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