California Attorney General Rob Bonta wasn’t just talking when he warned price gougers earlier this month “we see you” as his office cracks down on opportunists.
Bonta’s office filed a misdemeanor complaint of price gouging against a second Los Angeles-area agent Tuesday, less than a week after filing a first complaint against another agent.
The actions come as the office has sent out a raft of warning letters to California hotel operators and landlords who have been accused of inflating prices following the Palisades and Eaton fires. The number of warnings went from 200 letters on Jan. 17 to more than 650 less than two weeks later, offering an indication of just how rampant the issue has become.
“While matters that are the subject of a warning letter may result in an investigation or prosecution, the issuance of a warning letter is not a prerequisite to our office opening an investigation or bringing a prosecution,” a spokesperson for Bonta’s office said in an email to The Real Deal.
The office’s most recent charge was brought against La Crescenta broker Lar Sevan Chouljian of Team Rock Properties in Los Angeles Superior Court this week.
Bonta’s office said the complaint followed an investigation by the state Department of Justice into allegations Chouljian was taking advantage of a family looking to rent a home in Glendale after being evacuated due to the Eaton fire. Complaints alleged Chouljian offered a price that was 50 percent above the listing price.
Price increases of more than 10 percent from the most recent list price are not allowed in a state of emergency. The rule applies to homes listed in the last 12 months that are available for a short-term lease of 12 months or less.
Homes that have not been marketed for lease in the past 12 months must be priced at 160 percent of their fair market value. This can be determined using the U.S. Department of Housing and Urban Development’s tables.
Chouljian did not respond to requests for comment.
The broker is scheduled to be arraigned March 4, according to Bonta’s spokesperson. The representative declined to say whether Chouljian had been sent a warning notice prior to the charge being filed or provide further comment on the case.
A conviction for price gouging could result in up to one year in jail and/or a fine of up to $10,000.
Chouljian has not been hit with any past disciplinary actions, according to her California Department of Real Estate profile.
Price gouging rules went into effect after Gov. Gavin Newsom declared a state of emergency and will remain in place through March 8.
The rule’s nuances resulted in some confusion in the initial days after the fires when demand shot up, catching some agents off guard.
“This was a supply-demand curve that was new to us. Agents didn’t know,” The Oppenheim Group’s Jason Oppenheim said during an agent event last week.
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