A Beverly Hills company that turned Hollywood mansions into $16,000-per-night party destinations has paid out hundreds of thousands in fines and faces ongoing litigation in two states, court records show.
The Nightfall Group, operating under the corporate name Ultimate Host, LLC, has settled portions of a sweeping Los Angeles enforcement case while fighting continued claims from city prosecutors, unpaid vendors, and former business partners. Owner Mokhtar Jabli remains a defendant in the primary Los Angeles lawsuit filed more than two years ago.
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Police Called 250 Times in Two Years
Los Angeles City Attorney Hydee Feldstein Soto filed civil charges against The Nightfall Group in August 2023 after police responded to 250 complaints at company properties in Hollywood between 2021 and 2023. Officers handling the calls reportedly nicknamed their patrol vehicles “party cars.”
The complaint detailed a rental operation spanning hundreds of properties across Los Angeles, with individual homes charging between $7,000 and $16,000 per night. Court filings show Jabli told a judge in a related case that the company earned over $150,000 monthly from one mansion alone.
Hollywood Hills residents described music so loud their homes shook. Driveways blocked by party traffic. Streets clogged with guests at all hours.
The Rental Arbitrage Model
Nightfall’s approach centered on leasing luxury properties from owners under long-term contracts, then re-listing them as short-term rentals. The company marketed these homes as “villas” to wealthy clients looking for private event spaces.
Los Angeles law restricts short-term rental operators to one property where they live as a primary residence for at least six months. Operators must register each listing with the city Planning Department and display registration numbers in advertisements.
Prosecutors say Nightfall violated every requirement.
Allegations in the LA case:
- Operated hundreds of simultaneous rentals
- Never used properties as primary residences
- Failed to register listings with the city
- Allowed properties to function as unlicensed event venues
- Created ongoing public nuisances
The lawsuit named Jabli and three property owners accused of enabling the violations: Kirill Ayzenberg, 5554 Green Oak, LLC, and Jungle Kerry, Inc.
Miami Beach Files Parallel Enforcement
Three months before Los Angeles took action, Miami Beach sued over a waterfront property where The Nightfall Group served as booking agent.
The June 2023 complaint targeted a $6.5 million home at 1776 Bay Drive that owner Stephen Krause purchased in 2020. Tenant Scott Weissman was renting the property for $84,000 monthly under a seven-month lease, according to court documents.
Miami Beach prosecutors said the home operated as an illegal short-term rental with rates reaching $7,650 per night. The property accumulated 45 code violations from February 2022 forward, generating hundreds of thousands in unpaid city fines.
The case settled within days. Krause paid $387,650. The Nightfall Group paid $250. The property stopped short-term operations, and Weissman was prohibited from holding any Miami Beach property interest for one year.
Vendors File Breach of Contract Claims
Private lawsuits followed the government enforcement actions.
Vesta Homes, a Los Angeles staging company that furnishes luxury properties for sale, sued The Nightfall Group in January 2024 for $116,000 in unpaid invoices. The company had provided furniture and design services to Nightfall rental properties beginning in 2019 but received no payment despite repeated requests, court filings state.
CJ ENM America, Inc. won a default judgment of $344,247 in April 2023 after leasing a residence through Ultimate Host. When water damage made the home uninhabitable in January 2023, the company sought return of its security deposit and prorated rent. Ultimate Host refused. Court records revealed Ultimate Host was not the property owner and was itself in default on its lease with the actual owner, Blackstone Rexford, LLC.
The Real Deal reported in May 2023 that seven separate lawsuits had been filed against Ultimate Host and affiliated companies within 18 months. Property owners and business partners claimed fraud, broken lease agreements, and unpaid bills.
September 2025 Settlements
Last September, the City Attorney announced settlements with the three property owner defendants in the Los Angeles case.
Ayzenberg paid $215,000. 5554 Green Oak paid $45,000. Jungle Kerry paid $20,000. The settlements prohibit all three from operating non-compliant short-term rentals anywhere in Los Angeles and require them to notify any guests that parties are forbidden.
City Attorney Feldstein Soto said the agreements returned at least 10 rent-stabilized apartments to the housing market. The Franklin Apartments, a 30-unit building at 6871 Franklin Avenue, had been operating an underground hotel operation with tenants illegally subletting to short-term guests for over 3,000 nights since late 2020.
Litigation Continues
The primary case against Jabli and Ultimate Host/The Nightfall Group remains pending in Los Angeles Superior Court. City prosecutors seek penalties of $2,500 for each violation of each ordinance. Given the scope of operations described in court filings, total penalties could reach millions.
Feldstein Soto, who took office in December 2022 as LA’s first female City Attorney, created a specialized Public Rights Branch to handle these enforcement matters. She has stated publicly that more actions will follow against companies operating similar rental schemes.
The combined legal actions represent one of the most aggressive municipal crackdowns on luxury short-term rental operations in California. Cities nationwide are watching to see whether enforcement can reshape an industry built on converting residential housing into commercial lodging without hotels’ regulatory requirements or tax obligations.
