Vacation property executives face charges for alleged post-fire price gouging in Hermosa Beach

State and local prosecutors continue to file new price gouging charges against people accused of raising rents above legal limits in the aftermath of last month’s historically destructive fires in Los Angeles County.

On Tuesday, California Attorney General Rob Bonta announced a new criminal case against a landlord and a real estate agent for allegedly raising the rent on a Hermosa Beach home by 36% after the outbreak of the Palisades and Eaton fires.

The charges were filed Friday in L.A. County Superior Court against landlord Edward Kushins and agent Willie Baronet-Israel.

Increasing rent by more than 10% above pre-fire rates violates California’s law against price gouging in the wake of a declared state of emergency. Gov. Gavin Newsom issued that declaration shortly after last month’s fires suddenly thrust thousands of Angelenos into an expensive, highly competitive market for rental housing.

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“The California Department of Justice remains focused on putting a stop to price gouging,” Bonta said in a news release. “DOJ will continue relentlessly pursuing those who are trying to capitalize off of the chaos and pain of Southern California’s natural disaster.”

How the defendants are responding

LAist asked both defendants for comment on the charges.

Ed Robinson, who identified himself as Kushins’ attorney in a phone call, told LAist, “He did not intend to price gouge.” Robinson said Kushins would have no further comment at this time.

Kushins is the CEO of Vacation Property Partners, a company described online as “like a dating site to find your vacation property co-owner.” He previously founded another company called HomeExchange.com and sold it in 2017, according to his current company’s website, which also says he lives in Hermosa Beach.

Baronet-Israel describes herself on her Instagram page as the owner of a company called Coastal Vacation Estates. In text messages with LAist, she said, “We NEVER raised rents.”

She said her company caters to “celebrity types that lease my properties short term two blocks to beach.”

“We are a weird anomaly that specializes mostly in high end clients looking for short term stays due to job career situations,” Baronet-Israel told LAist. “I lease to a lot of famous ball players and celebrities.”

Baronet-Israel said she sent a letter to Newsom and other state officials arguing against provisions in the state’s price gouging law. She shared the letter with LAist.

In part, it read: “While I understand the intent behind the emergency measures is to address affordability and protect renters, applying a one-size-fits-all policy to the luxury rental market has created a crisis for high-income residents and property owners alike. These policies are driving affluent individuals out of California, resulting in a loss of economic contributions to local businesses and communities.”

Possible penalties and how to report

If found guilty, Kushins and Baronet-Israel could each face a maximum fine of $10,000 and up to a year in jail.

This is the third price gouging case filed by Bonta's office involving alleged attempts to raise rents after last month’s fires. The defendants in two previous cases are scheduled to be arraigned next month.

Prosecutors said the latest charges were filed after they investigated complaints sent to the Department of Justice. They said an Eaton Fire evacuee had sought to rent a Hermosa Beach home after Newsom’s emergency declaration, only to find the rent increased by 36%.

The Attorney General’s Office encouraged L.A. County residents to report possible price gouging by calling (800) 952-5225 or by filing a complaint at oag.ca.gov/report.

Tenant advocates have said that in the weeks after the fires, they found more than 1,300 online listings in L.A. County that appeared to have broken the state’s price gouging laws. However, prosecutors say bringing charges isn’t as simple as finding apparently illegal Zillow listings — the law requires them to identify specific victims who were “advertised, offered, or charged” a rent increase above legal limits since Newsom’s emergency declaration.

Bonta said in addition to the charges filed so far, his office has sent more than 700 warning letters to hotels and landlords about restrictions on price gouging.

Two other cases have been filed by the L.A. City Attorney — one against a home rental company and another against a homeowner and their agent — for alleged price gouging.