The grand jury indictment in California outlines a calculated operation by Goel since 2018, where he engaged in wire fraud, aggravated identity theft, and criminal forfeiture. His method was as cunning as it was cruel; he and his unnamed accomplices would create separate listings for the same property at different prices. Once a guest booked a lower-priced listing, Goel fabricated excuses—often plumbing issues—to cancel their reservation at the last minute or relocate them to substandard accommodations.
Victims often found themselves in properties plagued with “deteriorating furniture and cobwebs,” far from the quality they were promised. Due to the policies of rental websites like Airbnb, which do not permit full refunds if a guest stays the entire night, guests faced a dilemma. If they chose to leave, Goel would reportedly lie to the companies, stating that the guests had stayed, thus manipulating the system to avoid refunds.
The indictment also details the aggressive tactics employed by Goel and his associates, who would berate and threaten customer service representatives to deny guests rightful refunds. Furthermore, the scam involved the creation of fake host accounts on Airbnb, Vrbo, and Homeaway, often posing as couples using stock images and names like “Alex & Brittany” or “Becky & Andrew.” These fake accounts would also engage in mutual praise, leaving positive reviews for each other to mask the negative feedback and sustain the deception.
Goel’s tactics also included de-listing and re-listing apartments to avoid the visibility of poor reviews, thus continuing to attract unwary guests. The indictment specifically lists 19 apartments across cities like Austin, Nashville, Malibu, Denver, and Los Angeles where the scheme was operational.
The ruse unraveled following an in-depth investigation in 2019, initiated by reporter Allie Conti, who herself became a victim of the scam. The FBI was prompted to contact Conti shortly after her article went live, which implicated Goel’s extensive operation. His activities reflect a broader issue of fraud within Airbnb that has been documented as far back as a nearly-decade old Los Angeles report, highlighting the misuse of the platform by large companies posing as small property owners.
Relevant articles:
– Notorious Airbnb Host Charged with Allegedly Running $8.5M Nationwide Scam | Shray Goel is charged with running an Airbnb scam across 100 U.S. properties.
– Alleged Airbnb fraudster based in L.A. indicted on federal charges
– Massive Airbnb Scam Targeted Chicago Travelers, Authorities Say