Fines on Gougers Bound for Red Cross

In an unusual twist to conventional sentencing practices, the city of Los Angeles is requiring merchants who illegally jacked up prices after the Northridge earthquake to give money to a disaster-relief organization as part of their punishment.

Today, City Atty. James Hahn will present $16,300 in “donations” from convicted swindlers to the American Red Cross during a ceremony at the organization’s headquarters in San Pedro.

The price gougers hail from the San Fernando Valley, Glendale and Torrance, and most of their victims were Valley residents, according to Mike Qualls, a spokesman for Hahn.

“We felt that requiring defendants convicted of quake-related consumer swindles to give money to Red Cross Disaster Relief was a very effective and symbolic form of punishment,” Hahn said, “since the Red Cross was helping people after the earthquake while these defendants were ripping them off.”

The money is from five merchants who were convicted as a result of prosecutions by the city attorney’s office that grew out of investigations by the County Consumer Affairs Department. The consumer agency launched the probes in response to public complaints to an earthquake-fraud hot line.

About $7,700 from other convicted swindlers are expected in the coming weeks, Hahn said.

Today, the Red Cross will receive:

* $8,000 from Rapid Plumbing Inc., a Torrance-based chain convicted of overcharging customers for replacing and repairing water heaters, pipes and valves.

* $4,300 from Mohiuddin Chowdhury, 36, of North Hollywood, who managed a 7-Eleven store in Studio City, where customers were charged unreasonably high prices for bottled water, milk and other products.

* $2,000 from Chimney Charm in Glendale, which charged customers excessive rates for demolishing quake-damaged chimneys.

* $1,000 from A Plus Electric Co. at 10537-D Glenoaks Blvd. in Pacoima, which set unfair prices for post-temblor electrical services.

* $1,000 from Fabriborz Medrdad, 23, of West Hills, who operates the Mission Mobil Station at 14666 San Fernando Mission Road in San Fernando, where gasoline prices were hiked from $1.07 per gallon to $1.59.