Community members come together to discuss housing prices amidst emergency situations.
Iman Eshaghyan, a Beverly Hills real estate agent, faces charges of price gouging after reportedly raising rental prices by over 30% during a state emergency. The California Attorney General announced the charges, stating that Eshaghyan exploited families displaced by the Pacific Palisades Fire. Under California law, landlords cannot increase rent by more than 10% during emergencies. If convicted, Eshaghyan could face fines and potential jail time. The state is increasing scrutiny of landlords for similar violations in response to recent wildfires.
Beverly Hills – Iman Eshaghyan, a Beverly Hills real estate agent, has been charged with price gouging after allegedly raising rental prices by over 30%, a violation of California law. The charges were announced by California Attorney General Rob Bonta, who stated that Eshaghyan took advantage of two families who were evacuated due to the Pacific Palisades Fire.
According to an investigation conducted by the California Department of Justice, the unauthorized price increases occurred following the issuance of an Emergency Order. Under California Penal Code section 396, landlords are prohibited from increasing rent by more than 10% during a declared state of emergency. Eshaghyan is facing two misdemeanor counts for advertising and leasing properties at rates surpassing the legal limits.
If convicted, Eshaghyan could face significant penalties, including a maximum fine of $10,000 and a potential jail sentence of up to 12 months. Attorney General Bonta emphasized that exploiting vulnerable Californians for profit through price gouging is illegal and will not be tolerated.
Recently, the Department of Justice has heightened its scrutiny of landlords and businesses, having sent out over 750 warning letters to hotels and landlords suspected of price gouging following the recent wildfires in Southern California. Ongoing investigations are being carried out regarding price gouging, fraud, scams, and unsolicited low-ball offers on properties in collaboration with local law enforcement.
California law dictates that sellers cannot charge more than 110% of their pre-emergency prices during a declared emergency. The regulations include strict limits on price increases for newly sold items. Violators of these laws could face civil penalties reaching up to $2,500 per incident, alongside possible criminal charges.
Residents concerned about potential price gouging can take action by reporting incidents through the state’s designated website or contacting the hotline, with the recommendation of providing evidence such as screenshots and pricing details.
The Northern California wildfires prompted Governor Gavin Newsom to issue an emergency declaration that includes prohibitions against excessive rental increases. Eshaghyan has yet to respond publicly to the charges but has indicated that his attorney intends to engage in further communication.
Amidst the ongoing housing crisis in California, the real estate market is struggling to meet the increased demand for rentals from families displaced by the wildfires. This situation has drawn widespread attention to the actions of real estate professionals and landlords during state emergencies.
Law enforcement, including LA City Attorney Hydee Feldstein Soto, has recently announced similar charges against other individuals and businesses, indicating a broader effort to combat illegal price increases in crisis situations. The concerted actions reflect the state’s commitment to protect residents from exploitation during times of hardship.
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