"They are already making a huge profit. They bought these homes for pennies. They have already taken the money out of East Palo Alto. The rent is already $2,800. I'm a homeowner. That's more than my mortgage," he said.
The protesters said they have no grudge against mom-and-pop landlords with one or two properties; it's the corporate investors who snatch up large numbers of properties with whom they take umbrage.
"Don't be a vulture investor. Don't come into poor communities and price people out. Be a good, scrupulous landlord," said Patty Garcia, a volunteer supporter with El Comite de Vecinos, a local community-action group.
Farag and the company could not be reached for comment. Court records filed in U.S. District Court in San Francisco show he is one of five men indicted in October 2014 for bid-rigging and mail fraud related to real estate transactions at public auctions. The men obtained dozens of properties in San Mateo County, including in East Palo Alto, according to the indictment by the U.S. Department of Justice. The case is still active, although the two counts for mail fraud were dismissed against Farag on Oct. 13, according to court records. He still faces the bid-rigging charge.
Although an immediate goal is to reduce the Fetuu family's rent, the protesters are also asking state representatives to change the Costa-Hawkins law, which they said is hurting so many other working families.
"There's no rent control on any single-family homes or condominiums, even if a Wall Street private equity firm owns 20,000 homes," Daniel Saver, Community Legal Services housing program senior staff attorney, said.