Two men stand accused of orchestrating a nationwide scam that victimized thousands seeking vacation rentals on popular platforms like Airbnb and Vrbo. Their alleged scheme, spanning ten states and netting over $8.5 million, left travelers scrambling for alternative accommodations and reeling from financial losses.
Shaunik Raheja, 34, of Denver, and Shray Goel, 35, of Miami, face federal fraud charges stemming from an intricate web of deception. Authorities allege they created a network of fake host accounts, sometimes leveraging stolen identities, to list the same properties multiple times on different platforms. The highest bidder would win the coveted stay, while others faced last-minute cancellations or pressure to accept inferior lodging, often without access to the advertised property at all.
“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. “Fueled by greed, the defendants deceived consumers about the locations and conditions of properties, canceled reservations to double-book properties and based on racial prejudices, and lied to victims leaving them scrambling to find last-minute replacement accommodations. The sheer number of victims is astonishing, as is the millions of dollars earned though the scheme that took advantage of the reputations of online rental platforms that offer a valuable service.”
This elaborate bait-and-switch operation reportedly raked in millions between 2018 and 2019, fueled by over $7 million in Airbnb payouts and $1.5 million from Vrbo bookings. Both men deny the charges through their attorneys, with Goel claiming cooperation and requesting “patience” from the public.
“The defendants are charged with preying on unsuspecting travelers and robbing them of time and money, leaving them with no choice but to settle for inferior lodging at the last minute,” said Donald Alway, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The conspiracy charge alleging that the defendants discriminated against potential renters based on their skin color is a reprehensible abuse which must not be tolerated in the United States. The FBI will work with our federal partners and with the private sector to ensure business practices in the vacation rental industry are free of fraud and bias.”
According to the indictment, the scheme generated more than $8.5 million in 2018 and 2019: over $7 million in payouts from Airbnb reservations and over $1.5 million from Vrbo.
