Los Angeles — City Attorney Hydee Feldstein Soto March 28 announced that her office has filed a civil enforcement action against a group of individuals and their related companies accusing them of operating a sprawling illegal multi-million dollar rental property scheme and violating the city’s short-term rental ordinance (“STR Ordinance”). In addition, the defendants exploited vulnerable Angelenos by illegally raising the price of their rental properties in the wake of the wildfires, violating California’s Anti-Gouging Law.
Feldstein Soto’s lawsuit, filed for violations of California’s Unfair Competition Law (“UCL”), seeks a permanent injunction barring the individuals and their associated companies from engaging in short-term rental activity in the city, except that which is authorized by the STR Ordinance, a permanent injunction barring them from engaging in price gouging, restitution to tenants impacted by the illegal activity, and tens of millions of dollars in civil penalties.
“The scale of the alleged activity – the illegal short-term rentals and the wildfire-related price gouging – is outrageous,” said Hydee Feldstein Soto, Los Angeles City Attorney. “The defendants not only exacerbated a severe housing shortage but took advantage of Angelenos at their most vulnerable time. California has clear laws to protect renters from such unscrupulous actions for a reason, and I will always enforce these laws to safeguard our communities.”
Feldstein Soto’s lawsuit accuses the group of advertising and engaging in the short-term rental of dozens of properties for thousands of rental nights without city-required permits, including rent-stabilized units that cannot legally be used as short-term rentals. The defendants allegedly used deceptive tactics, including fake host identities, and falsely advertised properties as being located outside of the City in Beverly Hills and West Hollywood to evade enforcement and continue profiting illegally.
According to the complaint, the defendants include:
- Akiva Nourollah;
- Micah Hiller;
- Haim Amran Zrihen;
- Rachel Florence Saadat;
- Hiller Hospitality LLC, a California limited liability company;
- Hiller Hospitality Group LLC, a California limited liability company;
- 1070 Bedford LLC, a California limited liability company;
- Red Rock 70 LLC, a Nevada limited liability company registered with the California Secretary of State to do business in California; and,
- Coastal Charm LLC, a Nevada limited liability company registered with the California Secretary of State to do business in California.
In December of 2018, the city enacted the STR Ordinance to address the negative consequences of short-term rentals, which include the reduction of housing stock, increased nuisance activity, and a potential negative impact on neighborhood quality of life. The STR Ordinance went into effect on July 1, 2019, and prohibits any person from offering, advertising, booking, facilitating, or engaging in short-term rental activity in a manner that does not comply with the STR Ordinance.
Feldstein Soto encourages Angelenos who believe they are victims of price gouging to let the City know by submitting this complaint form or calling 311. Reports may be filed anonymously. She also encourages Angelenos to visit the LA City Emergency Management Department for the latest recovery resources.
The Public Rights Branch within the City Attorney’s Office is managing this litigation.
Case #25STCV07712
The People of the State of California vs. Akiva Nourollah, Micah Hiller, Haim Zrihen, Rachel Saadat, Hiller Hospitality LLC, Hiller Hospitality Group LLC, 1070 Bedford LLC, Red Rock 70 LLC, and Coastal Charm LLC.
Link to press release online: https://shorturl.at/KEv2X