Bonta claims Kobeissi raised the price of a home when a couple tried to rent it. The complaint alleges that he violated California Penal Code section 396, which protects residents from price gouging during a state of emergency.
A representative of Kobeissi’s real estate company called a news report about the charges “false” Thursday, but did not elaborate.
Newsom declared a state of emergency in Los Angeles and Ventura counties on Jan. 7.
In an executive order issued Jan. 12, the California governor suspended the existing time limitations under section 396, and extended the price gouging prohibitions under Jan. 7, 2026, for Los Angeles County.
The attorney general claims a couple tried to rent a home after the governor’s state of emergency order went into effect.
The couple was allegedly informed that the price increased by 38 percent after they filed an application for the rental, according to Bonta’s office.
“They decided not to rent the house due to the increase in price,” Bonta’s office announce in a press release.
The California penal code prohibits raising prices over a 10 percent limit, or no more than 10 percent of the total cost to the seller, plus the customary markup pre-state of emergency.
The penalty, if found guilty, can range up to one year in jail and a $10,000 maximum fine, according to the attorney general.
The California Department of Justice has also sent 500 warning letters to hotels and landlords who have been accused of price gouging since the fires began, according to Bonta’s office.
Bonta’s office is working with Southern California district attorneys, city attorneys, and other law enforcement partners to investigate more criminal investigations into price gouging, he said.
“As I have said repeatedly, the price gouging must stop,” Bonta said Wednesday. “Today, we are making good on our promise to hold price gougers accountable, with more to come.”
Bonta also urged the public to continue reporting possible incidents of price gouging to local authorities, or to his office.
