Cousins admit to double-booking rental scheme to scam $8.5 million. Airbnb blasts ‘bad actors’
-
Click here to listen to this article - Share via
See more from the L.A. Times in Google Search. Set us as preferred
- Two cousins pleaded guilty to a nationwide rental scam involving more than 10,000 bookings and $8.5 million in fraudulent revenue, reportedly through Airbnb, Vrbo and other platforms.
- The defendants used fake identities, fabricated reviews and false last-minute cancellation excuses to double-book properties and profit from properties across the nation.
- The indictment alleged the cousins engaged in racial discrimination, disproportionately targeting guests perceived to be Black for cancellation, though they didn’t plead guilty to those discrimination charges.
Two cousins admitted to federal crimes tied to a nationwide rental scheme that netted up to $8.5 million and relied on deceptive listings, double bookings and last-minute cancellations, according to federal prosecutors.
The men, Shray Goel, 37, of Calabasas and his cousin Shaunik Raheja, 36, of Denver, primarily targeted rental guests perceived to be Black for cancellations, the federal superseding indictment alleges, although they did not plead guilty to that allegation. The short-term rental strategy was launched in 2013 and involved an online business to list properties on digital platforms, which included Airbnb.
“Airbnb is built on trust, and bad actors have no place in our community. We supported the U.S. Attorney’s Office and the FBI throughout their investigation to help ensure those responsible are held accountable, and we are thankful for their work. We have taken multiple steps to strengthen our defenses to help make rare issues like this even rarer,” an Airbnb spokesperson said.
Vrbo, which also was used by the cousins, according to the indictment, did not immediately respond to a request for comment.
The business created by Goel and Raheja operated under various names, including Abbot Pacific LLC and Jet Set Work LLC, according to prosecutors. Properties included listings across Southern California and cities including Chicago, Dallas, Denver and Nashville.
A convicted bank robber awaits sentencing after pleading guilty in a nearly $1-million fraud scheme that targeted Southern California surfers.
From October 2017 to November 2019 the defendants used fake host names and other people’s identities to list properties, prosecutors allege. In some cases they listed properties using false or nonexistent addresses and posted fabricated reviews to make listings appear more legitimate.
The defendants allegedly used a mix of properties they owned and others they leased and listed on platforms such as Airbnb and Vrbo. The operation centered on a “double-booking, bait-and-switch” strategy, prosecutors said.
By listing the same property multiple times with varying prices across multiple platforms, they were able to choose the most profitable reservation while canceling others, according to the plea agreements. Guests whose reservations were canceled were given false explanations such as plumbing or maintenance problems or were sent to alternate rental locations.
After guest complaints and cancellations prompted one rental platform to ban them, the defendants used fake accounts to maintain their operations, according to their plea agreements. They also took measures to minimize negative feedback, such as reposting property listings under new identities.
Goel pleaded guilty to wire fraud, and Raheja pleaded guilty to obstruction of justice, according to the U.S. Attorney’s Office for the Central District of California.
Raheja admitted to making false statements to federal agents in 2023, including denying that the overbooking practices were intentional, according to the plea agreement.
A licensed real estate broker and three others allegedly set up the sale of a Burbank home, and both the owner and buyer were unaware of the $1.5-million transaction.
Prosecutors alleged the scheme was large in scale, involving more than 10,000 reservations and generating more than $8.5 million in revenue. The indictment also alleges that the defendants engaged in discriminatory practices based on racial bias when deciding what reservations to honor and cancel, and that guests perceived to be Black were disproportionately targeted for cancellation.
Both defendants did not plead guilty to the allegations involving discrimination or the scale of the scheme.
Goel faces a maximum sentence of 20 years in federal prison, and Raheja faces up to 10 years, according to the plea agreements.
U.S. District Judge Wesley L. Hsu is scheduled to sentence Goel on Aug. 14 and Raheja on Sept. 11.
More to Read
More From the Los Angeles Times
Podcasts
In this episode, we bring you the update on how an Altadena resident and her neighborhood are coming along, plus a re-run of the two-part series we did on the Poppyfields people back in June.
The Hillside Strangler murders terrorized Los Angeles in the late 1970s. The killers were a pair of sadistic cousins. One confessed. The other was set to stand trial—until L.A. prosecutors flinched.
Hosts Fidel Martínez and Suzy Exposito sit down with Lorely Rodriguez –aka Empress Of– indie pop singer, songwriter, and producer, for a conversation about identity, resilience, and her new album Dream House, made while simultaneously rebuilding an actual house in Altadena alongside her mom.
