Calabasas resident Shray Goel was sentenced to federal prison on Friday for his role in a $1.5 million short-term rental scam. The scheme defrauded travelers on platforms like Airbnb and Vrbo, primarily involving properties across Southern California. Goel, 37, will serve one year and one day for his part in the operation, which prosecutors described as a double-booking, bait-and-switch tactic.
Goel pleaded guilty to one count of wire fraud in April. His cousin, Shaunik Raheja, 36, of Denver, also pleaded guilty to obstruction of justice for lying to investigators in connection with the same scheme. Raheja's sentencing is scheduled for September 11. In addition to the prison time, Goel was ordered to pay a $15,000 fine, with a restitution hearing to follow at a later date.
Court papers detail that Goel, Raheja, and their accomplices owned or leased nearly 100 properties nationwide, including prime Southern California spots in Malibu, Venice Beach, Marina del Rey, and San Diego. The operation involved posting multiple listings for the same property across different platforms, often at varying prices for the same night. This allowed them to initiate a “secret bidding war,” giving the property to the highest bidder while lower-paying guests were canceled or redirected.
When cancellations occurred, renters were frequently given bogus last-minute excuses, like plumbing issues, or pressured into accepting inferior replacement accommodations, the U.S. Department of Justice reported. Prosecutors said popular listings were used as “bait” to lure guests, who were then often steered to less popular properties when their original bookings were overbooked. According to the superseding indictment, filed in Los Angeles federal court in January 2024, the scheme also involved racial discrimination, with Goel and Raheja making booking decisions based partly on their “racial prejudices and discrimination.” The defendants allegedly tried to avoid renting to guests they perceived to be Black, thereby depriving them of reservations and causing monetary losses.
To maintain the fraud, Goel and his associates used fake host names and, in some cases, other people’s identities to list properties and post fabricated positive reviews. This also allowed them to continue listing properties after they had been banned from Vrbo in 2015 due to repeated cancellations and complaints. When negative reviews did surface, the DOJ stated the cousins would falsely discredit them, post bogus negative reviews about the guests, or simply remove and re-list the property with new identifiers to purge the bad feedback. Both Airbnb and Vrbo cooperated with the government in the investigation.