LOS ANGELES —
Two cousins pleaded guilty Tuesday to federal charges tied to a nationwide bait-and-switch scheme involving short-term rental properties advertised online.
Quick Facts:
- Defendants: Shray Goel, 37, of Calabasas; Shaunik Raheja, 36, of Denver
- Charges: Wire fraud (Goel); obstruction of justice (Raheja)
- Scheme period: 2013 to 2019
- Tactics: Fake listings, double-booking, fabricated reviews
- Geographic scope: Nationwide, including California, Texas, Illinois, and Colorado
- Max penalties: 20 years (Goel); 10 years (Raheja)
- Sentencing dates: Aug. 14 (Goel); Sept. 11 (Raheja)
Shray Goel, 37, of Calabasas, pleaded guilty to one count of wire fraud. Shaunik Raheja, 36, of Denver, pleaded guilty to one count of obstruction of justice.
According to plea agreements, the pair launched an online rental business in 2013, listing properties through various platforms under multiple business names, including Abbot Pacific LLC and Jet Set Work LLC.
The defendants rented properties in cities across the country, including Los Angeles, San Diego, Chicago, Dallas, Denver, Nashville and Austin.
From October 2017 to November 2019, prosecutors said, Goel and Raheja used fake host accounts — sometimes using other people’s identities — to conceal their involvement, double-book properties and post fabricated positive reviews. They continued operating even after being banned by one platform in 2015 due to repeated cancellations and complaints.
In some instances, the pair listed nonexistent properties or used fake addresses to create duplicate listings for the same property, allowing them to evade local regulations and manipulate bookings.
Prosecutors said the core of the scheme involved double-booking and bait-and-switch tactics. The defendants listed the same property multiple times — sometimes across different platforms — at varying prices, then selected the highest-paying guest. They often left calendars open after bookings, creating overlapping reservations.
When overbooked or unwilling to host a guest, the defendants allegedly canceled reservations using false excuses, such as plumbing issues, or moved guests to different properties.
Authorities said the pair also attempted to suppress negative reviews by posting bogus complaints about dissatisfied guests and relisting properties under new identifiers to erase poor ratings.
Raheja admitted he lied to federal investigators in April 2023, denying knowledge of intentional overbooking.
U.S. District Judge Wesley L. Hsu scheduled sentencing for Goel on Aug. 14. He faces up to 20 years in prison. Raheja is set to be sentenced Sept. 11 and faces up to 10 years.