Los Angeles wildfires: Second California real estate agent charged with price gouging victims

State officials announced that another realtor has been charged with allegedly price gouging victims of the deadly wildfires devastating Southern California communities.

On Tuesday, California Attorney General Rob Bonta announced that the state is filing charges against a real estate agent, who was not named, alleging that they attempted to price gouge a family who was evacuated due to the Los Angeles Eaton Fire. 

Bonta said that an investigation revealed that after being evacuated in the Eaton fire, the family began searching for rentals through their real estate agent and inquired about renting a Glendale home. 

Prosecutors say the realtor offered the family a rental home in Glendale, but that the rent was more than 50% higher than the pre-fire rent price.

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California Gov. Gavin Newsom has extended emergency orders that prohibit such price hikes of more than 10% in Los Angeles County through March 8, 2025. The restrictions apply to existing tenants and new leases during the emergency period, according to the order. 

“In the face of natural disaster, we should be coming together to help our neighbors, not attempting to profit off of their pain,” Bonta said in a press release. “Today’s charges are another example of DOJ’s commitment to put an end to price gouging.”

Cal Fire reported that more than 12,000 homes, businesses and schools have been lost to the fires and more than 100,000 people have had to leave their homes.

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Bonta’s office said in order to protect Californians affected by the Southern California wildfires, The Department of Justice (DOJ) is actively investigating and prosecuting price gouging.

The DOJ has sent more than 650 warning letters, with more coming to hotels and landlords who have been accused of price gouging, Bonta said.

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“May this announcement serve as a stern warning to those who would seek to further victimize people who have lost everything in the face of Southern California’s wildfires: We won’t stop until the price gouging does,” Bonta added.

Bonta’s office said any violators of the price gouging statute are subject to criminal prosecution that can result in a maximum penalty of one-year imprisonment in county jail and/or a fine of up to $10,000. 

Those found in violation of price gouging are also subject to civil enforcement actions, including civil penalties of up to $2,500 per violation, injunctive relief, and mandatory restitution.

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Last week, Bonta’s office reported another real estate agent was charged for similar alleged price gouging, when a couple applied to rent a home, but after the application was received, they were informed that the price increased by 38%.

Anyone who believes they have been the victim of price gouging is encouraged to report it to their local authorities or to the Attorney General at oag.ca.gov/LAfires.