Rosenberg motel guilty of price-gouging

A Rosenberg hotel operator agreed to pay a fine and lawyer's fee Tuesday for gouging people fleeing Hurricane Rita two years ago.

Texas Attorney General Greg Abbott on Tuesday resolved the 2005 price-gouging charges he filed against Rosenberg motel operator Nizar Ali Bhalesha, who runs Homer Norton Motel. Ali Bhalesha could not be reached for comment.

“Texans won well-deserved praise for extending open arms to evacuees during the 2005 hurricane season,” Abbott said in a press release. “The few unscrupulous profiteers who took advantage of evacuees will be held accountable for their actions, sending a clear message that Texas will not tolerate those who exploit victims of natural disasters.”

RNB Enterprises Inc., which owns Homer Norton Motel, entered into an agreed final judgment and permanent injunction, concluding a lengthy dispute with the attorney general. An investigation by the Office of the Attorney General revealed that motel owner charged consumers fleeing the hurricane up to three times his standard rate for a room.

Under Tuesday's judgment, the defendant agreed to provide a refund to overcharged consumers and pay the state $20,000 in attorneys' fees and $40,000 in civil penalties. Within 30 days of the judgment, RNB Enterprises Inc. must notify overcharged consumers about the restitution plan, the press release said.

"Additionally, in the future, the defendant is prohibited from collecting hotel occupancy taxes from evacuees who are fleeing a disaster. RNB Enterprises Inc. must also post the daily room rate in each room and maintain a registration system that includes guests' names, contact information, length of stay and rates charged per day," the press release said.

The case stemmed from the Abbott's authority to crack down on price-gouging after a disaster is declared by the governor.