A Beverly Hills real estate agent has been charged with price gouging after allegedly increasing prices of rental properties by more than 30% following the Palisades Fire.
California Attorney General Rob Bonta announced the filing of charges against Iman Eshaghyan for price gouging two families who were evacuated in the wake of the Pacific Palisades Fire in a press release.
According to Bonta’s office, the investigation by the California Department of Justice revealed that after the Emergency Order was in place, the defendant increased the rental price by over 30% — including to tenants who eventually signed a lease. These increases exceeded the 10% limit laid out in Penal Code section 396. The charge carries a potential penalty of a $10,000 maximum fine and the possibility of 12 months in jail.
“Today, we’ve announced another price gouging charge, this time against a real estate agent for price gouging two families in the wake of the Pacific Palisades Fire. Profiting off Californians' pain though price gouging is illegal and I will not stand for it,” said Attorney General Bonta. “I urge current or prospective tenants to share their stories directly with local authorities like the LA City Attorney or LA District Attorney, or our office by visiting oag.ca.gov/LAfires or calling our hotline at (800) 952-5225.”
Bonta's office has sent more than 750 warning letters to hotels and landlords accused of price gouging following the Southern California wildfires, according to the state Department of Justice.
The DOJ has opened investigations into price gouging, fraud, scams and unsolicited low-ball property offers during the state of emergency, working with district attorneys, city attorneys and other law enforcement partners.
Under California Penal Code Section 396, sellers generally cannot charge more than 110% of their pre-emergency prices during a state or local emergency declaration. For items first sold after an emergency declaration, prices cannot exceed the seller's cost by more than 50%.
The law covers food, emergency supplies, medical supplies, building materials, gasoline, repair services, emergency cleanup, transportation, freight, storage, hotel rooms and rental housing. Exceptions exist when businesses face increased costs for labor, goods or materials.
Violators face up to one year in county jail and fines up to $10,000. Civil penalties can reach $2,500 per violation, plus injunctive relief and mandatory restitution.
Californians can report suspected price gouging at oag.ca.gov/LAfires or by calling (800) 952-5225. The attorney general recommends including screenshots of communications, pricing information, contact details for businesses or landlords, and any documentation showing price histories.
A current list of price gouging restrictions is available at https://www.caloes.ca.gov/office-of-the-director/policy-administration/legal-affairs/price-gouging/.