Two cousins accused of running a sprawling short-term rental scam are expected to plead guilty Tuesday in federal court in downtown Los Angeles, in a case that allegedly turned beach-vacation dreams into last-minute scrambles. Prosecutors say the operation relied on phony host accounts and duplicate listings to double-book properties, then steer paying guests into inferior or even nonexistent replacements. The case has drawn extra attention locally because several allegedly affected listings were in coastal neighborhoods and because court papers describe discriminatory practices.
Shray Goel, 37, of Miami, and Shaunik Raheja, 36, of Denver, are scheduled to enter their pleas Tuesday, as reported by MyNewsLA. The outlet reports that Goel has agreed to plead guilty to one count of wire fraud, while Raheja is expected to plead to an obstruction-of-justice charge for allegedly lying to investigators.
Scope laid out in government papers
The Justice Department’s superseding indictment, unsealed in January 2024, paints a picture of a far larger alleged fraud. Prosecutors say the scheme touched more than 10,000 reservations, involved roughly 100 properties and generated about $8.5 million in payouts, including listings in Malibu, Venice Beach, Marina del Rey and San Diego. A Department of Justice press release summarizes the charges and the government’s view of how the operation worked.
How the alleged scheme worked
According to the superseding indictment, the cousins and their associates allegedly ran a kind of secret bidding system by posting multiple listings for the same property at different prices, taking the highest-paying reservation and then canceling or moving lower-paying guests at the last minute. Court filings say they created fake host names, used other people’s identities without permission, fabricated positive reviews and posted bogus negative reviews about guests to bury complaints. The filings include examples of duplicate listings and specific acts that prosecutors say furthered the alleged scheme. Department of Justice records provide the detailed allegations.
Plea specifics and next steps
According to MyNewsLA, Goel’s planned admission would resolve a wire-fraud count against him in what the outlet describes as a package deal with Raheja, who is expected to plead to obstruction of justice. The two are scheduled to appear before a judge in downtown Los Angeles on Tuesday, when prosecutors are expected to outline any plea terms in open court. Any plea agreements are subject to a judge’s approval, and both men remain presumed innocent unless and until they are formally judged guilty.
Legal implications
The wire-fraud counts carry statutory maximum penalties of up to 20 years in prison, and the obstruction charge Raheja faces carries a possible sentence of up to 10 years, according to the Justice Department. The superseding indictment also charged Goel with aggravated identity theft, which can trigger additional consecutive penalties if proven. Department of Justice prosecutors in the Central District of California are handling the case.
Airbnb and Vrbo have cooperated with investigators, and the case highlights a broader rise in rental scams that can leave travelers out of pocket and scrambling for a bed at the last minute. CBS News previously covered the indictment, and data from the Federal Trade Commission shows consumers reported roughly $65 million in rental-scam losses in the 12 months ending June 2025. Travelers are urged to confirm host identities, stick to official platform payment channels and report suspected fraud to local police and the rental platforms.
