Two cousins plead guilty to double-booking rental scam that stole $8.5 million. Airbnb cracks down on “bad actors”
Two cousins have pleaded guilty to joint crimes related to a nationwide rental scheme that grossed up to $8.5 million and relied on fraudulent listings, double bookings, and last-minute cancellations, according to federal prosecutors.
The two men, Shray Goel, 37, of Calabasas and his cousin, Shaunik Raheja, 36, of Denver, targeted mostly black rental guests for evictions, according to the indictment, though they pleaded not guilty. The short-term rental scheme was launched in 2013 and involved an online business to list properties on digital platforms, which reportedly included Vrbo and Airbnb.
“Airbnb is built on trust, and bad actors have no place in our community. We’ve supported the US Attorney’s Office and the FBI throughout their investigations to help ensure those responsible are held accountable, and we’re grateful for their work. We’ve taken a number of steps to strengthen our defenses to help make rare incidents like this even less rare,” said an Airbnb spokesperson.
Vrbo 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 throughout Southern California and cities including Chicago, Dallas, Denver and Nashville.
Goel pleaded guilty to wire fraud and Rahej pleaded guilty to obstruction of justice, according to the U.S. Attorney’s Office for the Central District of California.
From October 2017 to November 2019, the defendants used fake names and identities to list properties, according to prosecutors. In some cases they list properties using false or non-existent addresses and post fictitious updates to make the listing appear legitimate.
The defendants are alleged to have used a mix of properties they own and rent on platforms such as Airbnb and Vrbo, according to the lawsuit.
The operation centered on a “double-booking, luring and switching” strategy, according to prosecutors.
By listing the same property multiple times at different prices across multiple platforms, they were able to select the most profitable bookings while canceling others, according to solicitation agreements. Guests who had their reservations canceled were given false explanations such as plumbing or maintenance issues, or were sent to other rentals.
After guest complaints and cancellations caused one rental platform to ban them, the defendants used fake accounts to maintain their performance, according to their agreements. They also took steps to reduce negative feedback, such as re-listing properties under new ownership.
Raheja admitted making false statements to federal agents in 2023, including denying that the overbooking practices were intentional, according to the plea agreement.
In the charges against them, prosecutors said the scheme was large in scale, involved more than 10,000 bookings and generated more than $8.5 million.
The case also revealed that the defendants engaged in racist practices when deciding which reservations to honor and delete. In particular, the lawsuit alleges that supposedly black guests were unfairly targeted for cancellation.
Both defendants did not deny the serious or discriminatory charges brought against them in the case.
Goel faces a maximum sentence of 20 years in state prison, while Raheja faces 10 years, according to the plea agreements.
US District Judge Welsey L. Hsu is scheduled to sentence Goel on August 14 and Raheja on September 11.
