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This article originally appeared on Business Insider.
An Airbnb host accused of making millions of dollars by posting fake reservations on short-term rental sites across the U.S. faces wire fraud and aggravated personal information fraud, according to an indictment filed last Thursday in Florida District Court. He was arrested and charged with theft.
Prosecutors say Shrei Goel, who calls himself a real estate visionary on his website, and people who worked for him booked one of his hundreds of properties. He made $7 million on Airbnb and $1.5 million on Vrbo by defrauding people, the indictment says. It was first reported by the newsletter Court Watch.
According to the indictment, the “double-booking bait and switch” occurred between January 2018 and November 2019. According to the complaint, Goel and his associates intentionally double-booked guests and fabricated “false last-minute excuses to cancel overbooked guests” or switch them to inferior alternatives. It is said that he even deceived her.
The scheme lists more than 100 properties in multiple states, including California, Florida, Illinois, Colorado and Texas, according to the indictment.
According to the indictment, Goel and his associates either canceled some guests’ stays outright and kept the collected fees or lied to rental platforms to avoid refunding guests. According to the indictment, he sometimes encouraged guests to stay at other properties offered as bogus upgrades and kept the money if the guests complained.
Once Airbnb customer service was involved, Goel “pressured, threatened and insulted” the representatives over the phone to get his way, prosecutors said. According to the indictment, if a customer left negative feedback, Goel and his associates would leave negative reviews about the guest or relist the property to remove the negative review. He retaliated by doing so.
In some cases, Goel and his associates listed rental properties that did not even exist, according to the indictment.
Goel and his associates also “hidden their own identities, double-booked properties, concealed negative reviews by delisting and relisting properties, and in order to protect their properties, “I used false names and sometimes pretended to be real people, using the identities and documents of other people.” (by listing the property through multiple hosts) and repeatedly objected to the removal of the property from the rental platform. Continuing to list properties after being banned from Vrbo in 2015 due to host cancellations and guest complaints. ”
Many of the fake host accounts posed as couples with names such as “Alex and Brittany” and “Jess and Tyler,” according to the indictment.
Goel did not immediately respond to a request for comment from Business Insider.
In a lengthy social media post on Wednesday, Goel appeared to refer to his ongoing legal troubles without going into any details of the lawsuit. He also appears to have denied reports regarding this matter.
“I know that the story that is currently unfolding about me is complex and evokes a range of emotions.” he wrote to x. “It’s easy to get caught up in media coverage, but I would appreciate the opportunity to share my views once the legal process is complete.”
Goel was first mentioned in a 2019 Vice article by journalist Ally Conti, who said she was also the victim of an Airbnb scam orchestrated by Goel and his associates.
As reported by Vice, the article led to sweeping changes to Airbnb in 2019, including verification of the 7 million listings on the platform and rebooking for guests who are dissatisfied with their stay. This included the introduction of a refund system. Accounts identified as being involved in this scheme were also removed.
“Airbnb is built on trust, and there is no place for malicious actors in our community. We assisted the U.S. Attorney’s Office and FBI throughout their investigation to ensure accountability. We appreciate your work,” Airbnb told Business Insider. Statement of charges.
Vrbo did not immediately respond to Business Insider’s request for comment.
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