November 13, 2024 The Best Source of News, Culture, Lifestyle for Culver City, Mar Vista, Del Rey, Palms and West Los Angeles

Two Men Indicted for $8.5M Airbnb Scam: Online Rental Fraud Exposed

Bait-And-Switch Scheme on Popular Rental Platforms Revealed

By Dolores Quintana

Two men have been indicted on federal fraud charges, accused of running a double-booking, bait-and-switch scam through popular online property rental platforms, primarily Airbnb. The Justice Department revealed today that the scam, which involved misleading listings and fraudulently canceling reservations, brought in more than $8.5 million, including instances of discrimination against Black individuals.

Shray Goel, 35, of Miami, and Shaunik Raheja, 34, of Denver, face charges related to fraud in connection with over 10,000 reservations tied to nearly 100 properties across 10 states. The superseding indictment accuses them of owning and operating a short-term property rental business, defrauding Airbnb, Vrbo, and guests renting properties through these platforms.

Goel, initially charged on December 13, was arrested in Florida on December 27 and released on bond the next day. Raheja was added as a defendant in the superseding indictment, and both are expected to be arraigned in the United States District Court in Los Angeles in the coming weeks.

The indictment alleges that the defendants used various names, including Abbot Pacific LLC, to carry out the fraudulent scheme. They owned and leased properties across the United States, managing nearly 100 properties by 2019.

To execute the scheme, Goel and Raheja allegedly double-booked properties through multiple listings on Airbnb and Vrbo, creating last-minute excuses, such as plumbing problems, to cancel overbooked guests or deceive them into moving to inferior accommodations. The indictment also claims they profited from a secret bidding war for properties, posting multiple listings at different prices and canceling or switching lower-paying guests to different properties.

The superseding indictment further alleges racial prejudices and discrimination in deciding which guests to keep or cancel. The defendants purportedly avoided renting to guests they perceived as Black.

“This deplorable scheme victimized thousands of consumers and families across the country, some of whom allegedly were discriminated against because of racial bias,” said United States Attorney Martin Estrada.

The defendants face charges of conspiracy to commit wire fraud, wire fraud, and aggravated identity theft. Each wire fraud charge carries a maximum penalty of 20 years in federal prison, with an additional two-year mandatory sentence for the aggravated identity theft counts.

The FBI and FDIC-OIG are leading the investigation, with assistance from the Federal Housing Finance Agency – Office of Inspector General. Airbnb and Vrbo are cooperating with the government in the ongoing investigation.

Related Posts

(Video) What Parents Love about Vistamar’s Open House v1

November 13, 2024

November 13, 2024

Why attend a Vistamar admissions open house? Parents talk about all that you can experience when you visit. At Open...

Family Searches for Missing Actress Chanel Maya Banks; Asks For Public’s Help in West LA

November 13, 2024

November 13, 2024

Relatives Search for Chanel Maya Banks, Last Heard From on October 30 The family of an actress based on the...

Court Halts Order for Expedited Veteran Housing in West LA, Citing VA’s Budget Constraints

November 13, 2024

November 13, 2024

Former Governor Arnold Schwarzenegger Criticizes the VA on Veterans Day The Ninth Circuit Court of Appeals has temporarily paused an...

Armed Robbery in Culver City: Suspects Flee with $12,000 Rolex in Early Morning Incident

November 12, 2024

November 12, 2024

Two Suspects Targeted Man in Parking Lot, Brandishing Firearms, Demanding Valuables Culver City police are investigating an early morning armed...

Metro’s New Bus Lane Camera Enforcement Aims to Speed Up Commutes for LA Riders

November 12, 2024

November 12, 2024

Pilot Program Begins With 60-Day Warning Period to Clear Bus Lanes The Los Angeles County Metropolitan Transportation Authority (Metro), in...

Legendary Actor Tony Todd, Known for Iconic Horror Roles, Dies at the Age of 69

November 12, 2024

November 12, 2024

Star of Candyman and Final Destination Remembered by Fans and Peers Iconic actor and Marina del Rey resident Tony Todd...

LAUSD Teacher Charged with Sexual Assault on a Minor, Police Believe There May Be Other Victims

November 11, 2024

November 11, 2024

Los Angeles County District Attorney George Gascón announced on November 8 that a middle school teacher, Colleen Jo Matarico, is...

Suspect Arrested, Another at Large After Culver City Vehicle Burglary

November 11, 2024

November 11, 2024

Police Ask Public for Assistance to Aid the Investigation Early morning on November 7, Culver City Police responded to reports...

Beverly Hills High Limits Student Gatherings After Pro-Trump Rally Disrupts Campus

November 11, 2024

November 11, 2024

Principal Cites Safety Concerns Following Post-Election Demonstration Beverly Hills High School has put limits on student gatherings after a pro-Trump...

LAX Runway Closures in November May Lead to Increased Aircraft Noise for Nearby Residents

November 10, 2024

November 10, 2024

Temporary Runway Shutdowns for Maintenance and Upgrades May Alter Flight Paths Los Angeles World Airports (LAWA) has announced temporary runway...

Racist Text Messages Target Students in Santa Monica, West LA, Raising Alarm Among Schools, Families

November 10, 2024

November 10, 2024

Outrage Spreads as Disturbing, Racially Charged Messages Reach Students and Others By Dolores Quintana Schools on the Westside of Los...

8 Things to Do in Big Bear Lake: A Local’s Guide to Adventure and Relaxation

November 8, 2024

November 8, 2024

Nestled in the San Bernardino Mountains, Big Bear Lake is a true gem for nature lovers, families, and adventurers alike....

Governor Newsom Convenes Special Session to Protect California Rights Against Future Federal Policies

November 7, 2024

November 7, 2024

Special Session Called To Defend Civil Rights, Reproductive Freedom, Climate Initiatives Governor Gavin Newsom has announced a special session of...

Megacity Review: Genaro Trejo’s Global Platform for Urban Arts and Literature Launches in Los Angeles’ Westside

November 7, 2024

November 7, 2024

Santa Monica, CA – A new voice has arrived on the Los Angeles literary scene with the launch of Megacity...

Chinese Chemical Company and Executives Indicted for Allegedly Fueling Fentanyl Crisis in Los Angeles

November 7, 2024

November 7, 2024

U.S. DOJ Charges Hubei Aoks Bio-Tech and Executives With 13 Counts  A federal grand jury has indicted Hubei Aoks Bio-Tech...