Two Men Charged In Alleged $8.5 Million Airbnb Scam

A federal grand jury has indicted two men on federal fraud charges, revealing abait-and-switch scam executed through Airbnb and VRBO.

On Dec. 13, a federal grand jury indicted Shray Goel of Miami and Shaunik Raheja of Denver on federal fraud charges, revealing an elaborate double-booking, bait-and-switch scam primarily executed through popular online property rental platforms like Airbnb. The indictment, announced by the Justice Department, allegedc that the duo amassed over $8.5 million through deceptive listings and the fraudulent cancellation of reservations, which also involved discrimination against potential guests who were Black.

The superseding indictment, filed against Goel and Raheja, accuses them of orchestrating fraud concerning more than 10,000 reservations tied to nearly 100 properties across 10 states. Initially charged on Dec. 13, Goel was arrested in Florida on Dec. 27 and released on bond the following day. Raheja was later added as a defendant in the superseding indictment. Both will be arraigned in the United States District Court in Los Angeles in the coming weeks.

The alleged Airbnb scam involved owning and operating a short-term property rental business operating under various names, including Abbot Pacific LLC. The duo is accused of double-booking properties through multiple listings on Airbnb and Vrbo, using fake last-minute excuses, such as plumbing problems, to cancel overbooked guests or redirect them to inferior accommodations. The scheme reportedly included a secret bidding war for properties, allowing them to maximize profits and keep their properties at maximum capacity.

Notably, the indictment asserts that racial prejudices played a role in the decision-making process, alleging that Goel and Raheja discriminated against potential renters based on their skin color.

United States Attorney Martin Estrada condemned the alleged scam, stating, “This deplorable scheme victimized thousands of consumers and families across the country, some of whom allegedly were discriminated against because of racial bias.” The FBI and FDIC-OIG lead the investigation, with the Federal Housing Finance Agency – Office of Inspector General assisting.

The charges against Goel and Raheja include conspiracy to commit wire fraud and 13 counts of wire fraud, with Goel facing additional charges of aggravated identity theft. If convicted, they could face a maximum of 20 years in federal prison for each conspiracy and wire fraud charge, along with a mandatory consecutive sentence of two years for the identity theft counts.

Airbnb and Vrbo are cooperating with the investigation, acknowledging the severity of the allegations. The indictment emphasizes that all defendants are presumed innocent until proven guilty in a court of law.