Two Cousins Plead Guilty in $8.5 Million Rental Fraud Scheme
Two cousins have pleaded guilty to wire fraud and obstruction of justice in a scheme that defrauded rental customers out of $8.5 million. The operation involved double-booking properties on platforms like Airbnb and Vrbo from 2013 to 2019. Sentencing is scheduled for late summer 2026.
news24.comThe pair used fake identities to list properties on platforms including Airbnb and Vrbo. They admitted to overbooking the same properties and canceling reservations at the last minute with false excuses, such as maintenance issues, to retain higher-paying bookings.
Federal authorities stated that the men targeted customers through bait-and-switch tactics. The investigation revealed that the fraud allegedly targeted black customers, though the defendants did not admit to allegations of racial discrimination.
Legal Proceedings
pleaded guilty to charges of wire fraud and obstruction of justice this year, following a federal probe.
admitted to using electronic communications to send false cancellation notices after securing better reservations. admitted to lying to federal agents during the 2023 investigation. Both men are awaiting sentencing hearings set for late summer 2026.
faces a maximum of 20 years in federal prison, while faces up to 10 years.
Platform Responses
“Airbnb is built on trust, and bad actors have no place in our community.”
We supported the US Attorney’s Office and the FBI throughout their investigation to help ensure those responsible are held accountable, and we are thankful for their work. The platforms were used to list the properties involved in the fraud.
The case highlights risks in online rental marketplaces, with affected customers losing vacation plans and payments.
Story Timeline
4 events- This year
Shray Goel and Shaunik Raheja pleaded guilty to wire fraud and obstruction of justice.
1 sourceNew York Post - 2023
Shaunik Raheja lied to federal agents during the investigation.
1 sourceNew York Post - 2013-2019
The pair operated the rental fraud scheme using fake identities.
1 sourceNew York Post - Late summer 2026
Sentencing hearings are scheduled for both men.
1 sourceNew York Post
Potential Impact
- 01
Sentencing could result in significant prison time for the defendants.
- 02
Airbnb and Vrbo may implement stricter verification for listings to prevent similar fraud.
- 03
Affected customers could pursue civil claims for compensation from the fraud.
- 04
Public trust in vacation rental services might temporarily decline.
- 05
The case may lead to increased federal scrutiny of online rental platforms.
Transparency Panel
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