Two relatives are at the center of an alleged $8.5 million vacation rental fraud that duped customers through deceptive practices like double-booking and bait-and-switch tactics.

Shray Goel, aged 36, and his cousin Shaunik Raheja, aged 37, have been accused of orchestrating this rental scam from 2013 to 2019, using fictitious identities to primarily target African American individuals.

The duo faced charges after a federal probe unraveled their scheme, culminating in their guilty pleas earlier this year, according to a report by the Los Angeles Times.

Investigators revealed that the cousins confessed to posting the same properties on various platforms such as Airbnb and Vrbo. They would then cancel reservations at the last moment under false pretenses, like maintenance problems, to retain the highest-paying booking.

An Airbnb representative commented, “Trust is the cornerstone of Airbnb, and there is no room for bad actors in our community. We collaborated with the US Attorney’s Office and the FBI during their investigation to ensure those responsible are brought to justice.”

“We have implemented several measures to bolster our security, making such incidents even less frequent.” The California Post has contacted Vrbo for their response.

While the duo pleaded guilty to charges of wire fraud and obstruction of justice, they did not admit to additional allegations of racial discrimination or the full $8.5 million scope of the fraud.

Goel also admitted to overbooking properties and using electronic communications to send guests false excuses for cancellations after securing higher-paying reservations.

Raheja specifically admitted that he lied to federal agents during the 2023 investigation.

Both men are currently awaiting sentencing hearings scheduled for late summer 2026. Goel faces up to 20 years in federal prison, while Raheja faces up to 10 years.

Download The California Post App, follow us on social, and subscribe to our newsletters