A federal grand jury has indicted a Denver man, Shaunik Raheja, 34, along with Miami resident Shray Goel, 35, on federal fraud charges related to an alleged $8.5 million vacation rental scam targeting Airbnb and Vrbo users. The indictment accuses the duo of running a deceptive scheme that involved double-bookings, a bait-and-switch tactic, and discriminatory practices, affecting over 10,000 reservations across 10 states.
Details of the Scam:
According to the Justice Department, Raheja and Goel orchestrated a complex operation involving fraudulent vacation rental listings and phony cancellations, resulting in substantial profits exceeding $8.5 million. The indictment outlines that the partners earned over $7 million from Airbnb bookings and an additional $1.5 million from conflicting reservations on Vrbo between 2018 and 2019.
Deceptive Practices:
The indictment suggests that the defendants, operating under business names such as Abbot Pacific LLC, managed short-term property rentals across various cities, engaging in double-booking strategies by listing the same property on multiple platforms. They allegedly canceled or moved guests to inferior accommodations using false reasons like plumbing issues. The indictment further claims that the scammers made decisions based on renters' apparent skin tone.
Identity Concealment and Banned Accounts:
Raheja and Goel purportedly used false names, engaged in identity theft, and employed fake street addresses to conceal their identities. Despite being banned from Vrbo in 2015, they allegedly circumvented the restriction using bogus accounts, manipulating reviews, and discriminating against potential renters based on their skin color.
Legal Consequences:
The pair faces charges of conspiracy to commit wire fraud and 13 counts of wire fraud, each carrying a maximum penalty of 20 years in federal prison. Goel also faces two counts of aggravated identity theft, each with a mandatory two-year consecutive sentence. The FBI and the Federal Deposit Insurance Corporation – Office of Inspector General lead the investigation, with assistance from the Federal Housing Finance Agency – Office of Inspector General.
Conclusion:
The indictment sheds light on a sophisticated vacation rental scam targeting users of major platforms like Airbnb and Vrbo. As legal proceedings unfold, Raheja and Goel may face severe consequences for their alleged fraudulent practices, including discriminatory actions against renters. The case underscores the importance of vigilance in the online marketplace and the ongoing efforts of platforms to combat fraudulent activities.
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