The couple filed a complaint with the California Department of Justice after discovering the price increase, triggering the investigation that led to charges in Superior Court. While criminal price gouging carries potential penalties of up to one year in jail and a $10,000 fine, Kobeissi received a probation-focused sentence. The Department of Justice can also pursue civil penalties up to $2,500 per violation and mandate restitution to victims.
This case marks the first secured sentencing in a high-profile price gouging prosecution tied to the Eaton Fire. Attorneys should note that California's emergency housing protections remain actively enforced, and the Attorney General's office continues investigating similar violations. Practitioners advising real estate clients should ensure compliance with disaster-area rent restrictions, as the AG has made enforcement a priority and encourages public reporting at oag.ca.gov/LAfires.