A luxury real estate agent who faced accusations of exploiting desperate wildfire victims has been sentenced in a case that marked one of the first criminal prosecutions under California's emergency post-disaster price gouging law. Mike Kobeissi, who markets himself as “Mr. La Canada,” was sentenced to 12 months of probation, 100 hours of community service, and mandatory ethics training. He was also ordered to pay $20,000 to a disaster relief fund.
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California Attorney General Rob Bonta stated that the sentence serves as a warning to those who would victimize individuals who have lost their homes and possessions. "My office is aggressively and relentlessly pursuing those who are trying to make a quick buck off someone else’s pain," Bonta said in a statement.
The case originated following the January 2025 wildfires that devastated areas including Altadena and the Pacific Palisades, displacing thousands of residents. These residents subsequently faced a surge in demand for rental properties.
Kobeissi was initially charged with violating California’s emergency post-disaster price gouging law. However, his attorney, Dale Galipo, confirmed that Kobeissi was ultimately convicted of a misdemeanor count of false advertising. "This was an unfortunate situation," Galipo told the LAist. "Mike did not make $1 off of this situation. And it’s unfortunate that it happened, but we were happy to get it resolved."
According to the Attorney General's office, the investigation began after a couple whose home was destroyed in the Eaton Fire applied to rent a property listed by Kobeissi. After submitting their application, they were informed that the monthly rent had been increased by 38% above the advertised price. The couple declined to rent the home and reported the incident to the Attorney General’s office.
California's emergency anti-price gouging law prohibits landlords from increasing rents by more than 10% above pre-disaster advertised prices during a declared emergency period. The Attorney General’s office did not provide immediate clarification on why the initial price gouging charge was dropped.
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As part of his sentencing, Kobeissi is also required to write an apology letter to the couple who reported him. Several other landlords and real estate agents have faced charges related to alleged violations of the post-fire rent gouging ban, though their cases are still pending.
Tenant advocacy group The Rent Brigade has voiced criticism regarding enforcement efforts, noting that only a limited number of prosecutions have resulted despite the group identifying thousands of rental listings suspected of violating emergency rules. Los Angeles County's rent gouging protections remained in effect for approximately 16 months before being lifted in May.