LOS ANGELES - Two cousins have pleaded guilty to federal charges in Los Angeles for orchestrating a $1.5 million short-term rental scam that targeted Airbnb and Vrbo users through deceptive "bait-and-switch" tactics.
The scheme, which spanned nearly 100 properties across Southern California and the U.S., involved double-booking guests and, according to prosecutors, intentionally discriminating against Black travelers by canceling their reservations based on racial prejudice.
What we know:
Shray Goel, 37, and Shaunik Raheja, 36, operated a sophisticated short-term rental scam across Southern California and other U.S. cities.
By listing properties—including luxury spots in Malibu and Venice Beach—at different price points for the same dates, they ran "secret bidding wars."
The highest bidder was granted the stay, while lower-paying guests were either canceled with bogus excuses like "plumbing issues" or moved to inferior locations.
The Department of Justice confirmed the duo used fake host names and fabricated reviews to bypass platform bans and maintain high ratings.
According to the investigation, Goel and Raheja actively discriminated against Black travelers, choosing which reservations to honor based on racial bias.
Goel pleaded guilty to wire fraud, while Raheja pleaded guilty to obstruction of justice for lying to federal investigators.
What we don't know:
While the indictment outlines a $1.5 million loss, the exact number of individual victims impacted by the discrimination and fraud has not been fully tallied.
It is also unclear if other associates involved in the management of the 100 properties will face additional charges, as the indictment mentions "others who worked with them."
Timeline:
- 2015: The defendants are banned from Vrbo following a high volume of complaints and cancellations but continue operating under fake identities.
- January 2024: A federal indictment is filed in Los Angeles detailing the $1.5 million fraud and racial discrimination.
- April 2026: Goel and Raheja plead guilty to federal charges in a "package deal."
- August 14, 2026: Scheduled sentencing for Shray Goel.
- September 11, 2026: Scheduled sentencing for Shaunik Raheja.
What's next:
The defendants remain out on bond pending their sentencing late this summer.
Airbnb and Vrbo are reportedly continuing their cooperation with federal authorities to identify any remaining fraudulent accounts linked to this network.
The Source: The details in this report are based on federal court filings from the U.S. District Court in Los Angeles and official statements released by the Department of Justice.