Los Angeles City Attorney sues large real estate firm for price fraud

Atti, Los Angeles. Hydee Feldstein Soto sued apartment behemoth Blueground Us Inc. for rent providers involving multiple price fraud in furniture following the fire in the area.

In a state of emergency, landlords and their representatives are usually prohibited from collecting or promoting more than 10% of rent before the fire broke out on January 7. Limits expire on March 8 unless extended.

In the lawsuit announced Tuesday, the city attorney's office cited more than 10 cases accusing Blue Land of engaged in price fraud, including an apartment in downtown Los Angeles where the company raised more than 30% of rent from each $4,140 to $5,400 per month.

Bluefield denied that the company had violated opposition missionary law and said most listings cited by city prosecutors were future dates that were not subject to price restrictions.

"We are heartbroken due to the recent damage caused by wildfires in Los Angeles and surrounding areas," Blueland spokesman Jamie Goldstein said in a statement. "We are working closely with the city attorney's office." , to provide additional information and clarify any issues, and will continue to revisit our pricing model until the housing crisis in Los Angeles subsides.”

Blueground is not a typical apartment company, and its products are ideal for those who lose their homes in the fire and don’t want to buy new sofas and beds. BlueGround rents units from owners, offers apartments, and then rents apartments to tenants and businesses that require long-term housing.

Its website says Blueground operates globally, although it is unclear whether city prosecutors sued Blueground Us Inc. for just a U.S. subsidiary.

"Bluelands are not only unreasonable but illegal to exploit Angelenos' strengths in the most vulnerable circumstances and must be immediately stop."

The action announced on Tuesday is the latest authorities since the announcement of prices has been hesitant since the fire was widely reported.

The California Attorney General’s Office has filed at least two criminal cases against LA-AREA real estate agents. Some real estate publicly traded companies, such as Zillow, have also moved out of the list of rents that exceed the 10% threshold.

In addition to the civil case filed against Bluefield, the city attorney’s office announced that it has also filed criminal charges against homeowners and their real estate agents for alleged price fraud.

The real estate agent and his attorney said that once the agent learns the price mining rules, it never lists at that price.