LOS ANGELES – City Attorney Hydee Feldstein Soto announced today that her office has filed a civil enforcement action against a group of Defendants who allegedly operate an illegal short-term rental enterprise spanning at least 30 properties. The City alleges that the Defendants engaged in unpermitted short-term rentals - including of rent-stabilized units - and price gouging of renters in violation of State and local laws. The City is seeking, among other relief, an injunction prohibiting the Defendants from continuing to violate the law, restitution to tenants who were subjected to price gouging, and statutory civil penalties.
Profiting from the City’s housing crisis, the lawsuit alleges that the Defendants - Dylan Abekasis, Arie Abekasis, Rajaa Chraibi and Marcelle Melka - illegally converted at least 30 residential properties into short-term rentals, including rent-stabilized units which are ineligible for home-sharing under the City’s Short-Term Rental Ordinance. The Defendants also allegedly used expired or invalid Home-Sharing Registration numbers required under City law, and falsely claimed that some properties were located outside of Los Angeles in order to evade the City’s short-term rental requirements. The properties are widely advertised on Airbnb, VRBO and Booking.com.
Feldstein Soto’s lawsuit also alleges that, in the wake of the January 2025 wildfires, which forced over 100,000 Angelenos to evacuate their homes, the Defendants illegally increased rental prices by more than 10 percent, in violation of California’s and the City’s price gouging laws.
“With an affordable housing crisis, a homelessness crisis, and many Angelenos still dealing with the devastating impacts of the wildfires, exploitation like this will not be tolerated,” said Hydee Feldstein Soto, Los Angeles City Attorney. “Those who seek to profit by breaking our laws and preying on vulnerable Angelenos will be held accountable.”
The City of LA’s Short-Term Rental Ordinance permits eligible residents to engage in limited home-sharing of their primary residence, subject to registration and other requirements. The ordinance was enacted to protect the City’s housing supply, preserve neighborhood quality of life, and prevent residential properties from being converted into underground hotels.
California’s Price Gouging Law generally prohibits businesses and landlords from raising prices for essential goods and services - including rental housing - by more than 10% after a declared state or local emergency, such as a wildfire, and the prohibition remains in effect for the duration of the emergency extensions.
The Defendants are accused of violating the City of Los Angeles’ Short-Term Rental Ordinance and Price Gouging Law, the State’s Price Gouging Law, and the Unfair Competition Law.
Feldstein Soto’s Office attempted to resolve this matter before pursuing litigation, including by issuing cease-and-desist letters to and serving subpoenas on the Defendants. Those efforts were ignored, prompting this civil enforcement action.
This litigation is being managed by the City Attorney’s Public Rights Branch. Investigative support was provided by the City Attorney's Community Law Corps.
Los Angeles Superior Court Case #26STCV25246: Complaint
The People of the State of California vs. Dylan Abekasis, Arie Abekasis, Rajaa Chraibi, Marcelle Melka.
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Hydee Feldstein Soto is the 43rd Los Angeles City Attorney, elected in November 2022 and sworn into office in December 2022. Her team of nearly 1,000 legal professionals, including 500+ attorneys, carries out legal work for the City of Los Angeles at her direction and under her supervision. She is the first female City Attorney in L.A. history.