The U.S. Attorney's Office for the Central District of California announced Wednesday that two men have been charged with short-term rental fraud.

The Department of Justice has charged Shrey Goel, 35, and Shanik Raheja, 34, with orchestrating a sophisticated online rental fraud scheme that netted them more than $8.5 million. according to to United States Attorney's Office, Central District of California. The two allegedly manipulated listings on popular platforms such as Airbnb and Vrbo using tactics such as double-booking and bait-and-switch scams, as well as racist acts against Black people.

The fraud affected approximately 100 properties in 10 states and involved more than 10,000 reservations, according to a news release. According to the charges, Goel and Raheja operated a rental business under various names, including Abbott Pacific LLC, and used this business to defraud both the rental platform and its users. The pair allegedly posted multiple listings of the same property at different prices, causing lower-rate guests to cancel and direct them to less desirable accommodations. (Related: Betsy McCaughey: America, don't fall for the rent control scam)

Miami man charged in $8.5 million short-term rental scam that left thousands of victims: prosecutors. https://t.co/TOnKtJKNsH

— NBC 6 South Florida (@nbc6) January 4, 2024

Goel was originally charged in December and is currently free on bond. Raheja was later added as a defendant. Both men are scheduled to be arraigned soon in U.S. District Court in Los Angeles.

Their plan was not only financially motivated. The press release also stated that there were elements of racism. “Goel and Raheja made decisions about which guests to keep and which guests to cancel based in part on racial bias and discrimination,” the indictment alleges, according to the release.

“This deplorable scheme cost the lives of thousands of consumers and families across the country, some of whom were allegedly discriminated against due to racial bias,” U.S. Attorney Martin Estrada said in a statement. mentioned in. “Incited by greed, the defendants deceived consumers about the location and conditions of the properties, canceled double-booked property reservations based on racial bias, lied to the victims, and forced the victims to replace them at the last minute. I had to scramble to find accommodation.

in post In X, Goel indirectly addressed the accusations. “We often find ourselves at crossroads and face challenges we never expected. That's where I am now, which has led to a lot of discussion and judgment about who I am and what I've been doing. Location,” Goel wrote. “I’m here today to ask you something really important: Please wait for the full story to be revealed and withhold judgment until all the facts are made public in a proper legal environment. .”