Cousins plead guilty to short-term rental scam in California and other states
Two cousins, one of whom is from Southern California, pleaded guilty to a double-booking, bait-and-switch rental scam to maximize their profits in short-term rentals, some of which were listed under fake addresses.
The Department of Justice said Calabasas resident Shray Goel, 37, and his cousin, Denver resident Shaunik Raheja, 36, carried out the scheme in several states but had rental properties scattered around Los Angeles County's coastal neighborhoods in Marina Del Rey, Venice and Malibu.
Goel pleaded guilty to one count of wire fraud, which carries a maximum sentence of 20 years in federal prison. Raheja pleaded guilty to one count of obstruction of justice, which carries a maximum sentence of 10 years in federal prison.
Prosecutors said the pair carried out the scheme between October 2017 and November 2019. The Justice Department said the cousins posted multiple listings with varying rates for the same property across several platforms.
They would rent the place to the person who paid the highest price and lie to other customers who had booked the property, saying it was closed because of a plumbing problem or other unforeseen issues, according to prosecutors. Federal investigators said the cousins would either cancel the reservation, convince the guest to cancel or move them to a different short-term rental.
The Justice Department added that Goel and Raheja used fake host names, sometimes using other people's identities, and were banned from a platform in 2015 after being flagged for repeated cancellations and guest complaints.
When guests complained about the cousin's properties and practices, they created false negative reviews of the customers before removing the listing and reposting it on platforms, according to the DOJ.
The cousins' sentencing hearings are scheduled for later this year.
