Community Corner

Brothers Receive 4 Years Probation in Santa Monica Vacation Rental Scam

Eran and Yerev Shabtay pleaded guilty to four criminal counts, including false advertising and illegal tenant lockout.

By City News Service

Two brothers from the San Fernando Valley were sentenced to four years probation and ordered to pay $50,000 in fines and restitution for scamming tourists looking for Santa Monica vacation rentals, prosecutors announced today.

Eran “Ron'' Shabtay, 43, and his brother, Yerev “Reeve'' Shabtay, 42,
pleaded guilty last week to four criminal counts, including false advertising
and illegal tenant lockout.

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The Santa Monica City Attorney's office filed the charges in November 2012, after receiving complaints from more than a dozen tourists visiting from as far away as Norway and Australia.

“False advertising is a serious crime,'' Deputy City Attorney Adam Radinsky said. “It cheats consumers and it gives dishonest businesses an unfair advantage over honest ones. Consumers need to know that they can trust
what is promised to them, including online ads.''

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The Shabtays owned two properties, one on Second Street and the other on
Pacific Street, and advertised short-term rentals on www.vrbo.com and
www.homeaway.com.

“It's illegal in Santa Monica to rent out any residential property on a short-term basis,'' Radinsky said, adding that the minimum allowable rental period is 30 days.

Would-be renters paid the Shabtays in full, months in advance, by credit
card, putting up as much as $5,000 for a stay, prosecutors said. But many
never got access to the property after arriving in town, while others' credit
cards were charged more than the agreed-upon amounts.

Complaints were also made about the properties being smaller than
advertised and in poor condition.

The property owners were ordered to refund a total of nearly $23,500 to
customers who have not had their credit card charges reversed. In addition,
they must pay a $30,000 fine to Santa Monica's Consumer Protection Fund, perform 80-104 hours of hard labor and 100 additional hours of community
service.

The Shabtays were barred from offering short-term rentals anywhere in
Los Angeles County.

 


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