A Los Angeles-based Airbnb fraudster has been charged with double-booking nearly 100 properties across the United States, including some that didn't exist, and refusing to refund guests.
Shrey Goel is charged with wire fraud and aggravated identity theft, according to an indictment filed Thursday.
An alleged fraudster concocted a nationwide Airbnb scam, double-booking customers in nearly 100 rental properties across the United States and raking in nearly $7 million in profits. Court Watch and 404 Media reported.
According to Goel's indictment, between January 2018 and November 2019, Goel and other employees contacted landlords on numerous occasions informing them that the property was unavailable. In this case, he contacted them just a few minutes before he was scheduled to check in.
Mr. Goel would then offer those guests a free rebooking to an upgraded property before referring renters to “inferior alternatives.”
Prosecutors alleged that Goel “arranged a secret bidding war in which the property was leased to the highest bidder and profited from this scheme.''
Goel is also accused of refusing refunds to entitled guests, using false names and listing properties under false identities. He sometimes booked guests into rental properties that did not exist, according to the indictment.
The alleged hoax involved properties primarily in Los Angeles, Malibu, and Marina del Rey, as well as various locations across the United States, including Colorado, Illinois, Florida, Indiana, Ohio, Texas, Tennessee, and Wisconsin.
Prosecutors say the scammer was also active on Vrbo and made $1.5 million from the platform before it was banned in 2015.
a Vice investigation According to 404 Media, Goel was named in a 2019 fraud case, but the arrest warrant was only filed on December 28.
Mr. Goel appeared to address the controversy on his since-deleted Twitter account, which featured his name and a photo of Mr. Goel and was previously used by Vice in an article about the scam.
“Yesterday was an incredibly tough day for me. I can't speak publicly about the situation, but I was heading to my condo feeling sorry for myself,” Goel wrote in a now-deleted statement. I wrote this in a post.
“This somber scene instantly brings my own problems into perspective and reminds me of the deeper suffering endured by others,” his message added, concluding with “Stay strong.”
Airbnb told the media in a statement: “Airbnb is built on trust, and malicious actors have no place in our communities. We will continue to support the United States throughout the investigation to ensure accountability.” We support the prosecutor's office and the FBI and thank them for their work.”
