Milwaukee attorney says Airbnb discriminated against her as FBI makes arrests in national scam

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Milwaukee attorney Makda Fessahaye says she experienced blatant discrimination after booking a reservation directly through Airbnb for a stay at a property affiliated with a Hilton hotel in Florida.

Fessahaye, along with five of her friends, say they are victims of a similar AirBnb scam previously reported by the Wisconsin Law Journal.

“On January 9, 2024, I read a Wisconsin Law Journal article that outlined a national Airbnb scam. The complaint details closely resembled my experience in 2017. I immediately recounted my experience on Twitter (now X) and have since been in contact with the Wisconsin Law Journal and the FBI,” Fessahaye said.

Fessahaye further states her experience with Airbnb was blatant discrimination.

“I knew it was racism and discrimination,” said Fessahaye during an interview with the Wisconsin Law Journal.

During an interview with the Wisconsin Law Journal, Fessahaye said she booked an Airbnb rental on Feb. 24, 2017, for an April 21 – 23, 2017, stay at The Grand Doubletree (a Hilton property), located at 1717 N Bayshore Drive, #2757, in Miami, Florida.

“I booked it for six guests total as the original Airbnb condo listing indicated. I paid $909.00 USD for the stay,” said Fessahaye.

According to Fessahaye, on Feb. 24, 2017, she confirmed with the host, Daniel, that there were six total guests arriving on April 21, 2017, and that they were arriving early. Daniel confirmed the group could leave its luggage in his office, according to Fessahaye.

Fessahaye noted prior to April 21, 2017, each guest confirmed their attendance utilizing Airbnb’s mobile app or website.

“All six guests, including myself, are Black women and present as Black. Our profile photos were included in our Airbnb profiles and on the rental reservation,” Fessahaye noted.

Fessahaye said she received Airbnb reservation reminders on April 14, 2017, and April 19, 2017, respectively.

On April 21, 2017, on or around 10 a.m. she followed the reservation instructions and contacted one of the hosts, Marco, using the number provided. She informed the host that her party of six had arrived and that the guests needed to drop off their luggage in the other host, Daniel’s office, per Daniel’s message on the Airbnb application.

“He indicated I could check-in early to the rental at the front desk of the Doubletree Hotel,” Fessahaye said.

According to Fessahaye, upon arrival at the rental, she became aware that the rental unit number was incorrect.

“I booked Apt 2757 and received keys to Apt 4040. Apt 4040 had 2 bedrooms, but only had two bathrooms and two beds (one king and one full bed), which was insufficient for a group of six adult women. Again, we booked a rental that was to have four beds (three queens and one king bed) and 2-1/2 bathrooms,” Fessahaye said.

Fessahaye said at first she assumed it was an honest mistake.

“I immediately called the co-host Marco by phone to notify him of the error. He accused me of only booking for three guests. I notified him that my confirmation included six guests and my Airbnb messages with Daniel also indicated six guests. Upon confirmation of my guest count, Marco told me that he would provide us with rolling beds to account for the lack of beds. I asked that he instead accommodate us with the unit I originally booked and that I had to leave for a pre-paid brunch reservation. I asked if I could leave our luggage in the unit or leave it in Daniel’s office while they sorted out the error. He said we could leave our luggage in the unit,” Fessahaye said.

According to Fessahaye, she then subsequently messaged Daniel via the Airbnb mobile app to notify him of the issue and asked him to remedy it on or before 3 p.m., which was the original check-in time promised in the written reservation.

“He said that he moved me to a two-bedroom condo, but if I didn’t like the second unit, he understood and would look at other arrangements. I responded immediately indicating that it was not about liking or preference, but rather it was a different accommodation,” Fessahaye said, noting, she was “satisfied that they would address the issue, I left for brunch.”

Fessahaye said the co-host Marco then contacted her while she was at brunch, along with her five friends.

“He then indicated that I received an upgraded unit due to flooding in the unit I originally booked. I asked why I was not made aware of the flooding prior to arrival or when I complained. He did not provide an answer. I said I required a different arrangement to accommodate six guests. After I requested a refund, Marco said if I vacated the unit in about an hour, they would refund me. Again, I already relayed to him that I was at brunch and unable to get back in time. I also told him that I was unable to find hotel accommodations for six people in that quick of a turnaround. He said he could provide us with rolling beds and an $85 refund,” Fessahaye said, noting that she proceeded to contact the other co-host, Daniel, via the Airbnb app messaging.

Fessahaye said she then consulted with her five friends.

“Due to our inability to find same-day hotel reservations that could accommodate six women for a reasonable price, we decided to stay in the unit if we received a partial refund and rolling beds,” Fessahaye said.

Shortly thereafter, Fessahaye said she contacted Daniel via the Airbnb app to negotiate a refund of $450 for half the original accommodation.

“He countered with $150. We agreed on $300 and two rolling beds,” she said.

On April 21, 2017, Fessahaye filed a formal complaint with Airbnb and received a message on April 22, 2017, notifying her that they asked Daniel, the host, to contact her as soon as possible.

“As evidenced by the final messages between me and Daniel, the complaint was redirected to the host,” Fessahaye said, noting “my guests and I photographed the unit on April 21, 2017, and our original booking was provided to Airbnb support.”

According to Fessahaye, she received a $300 refund from Daniel on April 23, 2017, as promised, however she said that was not enough given the bait-and-switch experience for lesser accommodations than what was originally promised and paid, according to Fessahaye.

“Since I could not contact a live person on Airbnb support, I used Twitter to complain and tagged Airbnb on April 23, 2017. On April 24, 2017, at 12:06am, I received a direct message from the account Airbnb help. I shared that I tried to file a complaint with the site but was limited in my options. I shared my experience briefly and was told that a case manager would contact me,” Fessahaye said.

According to Fessahaye,, on April 24, 2017, at 10:22 a.m, one of her traveling companion friends noticed that the original listing description for Unit 2757 had been changed to sleep five guests instead of six.

Original messages showing accommodations accommodate 6 guests.  Dated: February 24, 2017

Revised active listing showing accommodation of 5 guests.  Dated January 24, 2024

Between April 25, 2017 and April 26, 2017, Fessahaye said she was in communication with Airbnb.

“I expressed that I felt discriminated against, that the host violated the booking policies and that I should be fully refunded. On April 26, 2017, Airbnb offered to investigate and only offered a $150 ($25 per person) credit for use in one year. I worked with Mariah D,” Fessahaye said, noting on April 27, 2017, she received an automated email from Airbnb that indicated that my case was under review.”

About a week later, on May 4, 2017, Fessahaye completed her review of her stay and submitted it to Airbnb.

“Upon submission, I received access to the review written by the host Daniel at 10:46 a.m. He wrote a negative review and accused me of threatening to provide him a bad review. He also said he would not recommend me to any host,” Fessahaye said.

When the Wisconsin Law Journal reached out to Airbnb, it denied that Daniel had written a review. However, the Wisconsin Law Journal was able to obtain a copy of the original review from Fessahaye.

According to the federal court documents obtained by the Wisconsin Law Journal, in a recent federal investigation that resulted in FBI arrests of a different Airbnb host, “If guests complained about a property or posted a negative review, defendant … and others working with him and at his direction sometimes posted and caused to be posted false negative reviews about the guests.”

On May 4, 2017, Fessahaye  immediately notified her friends of the review.

“They attempted to write their own reviews, but were unable to. My guests flagged the review and submitted complaints using Airbnb support. They were not contacted,” Fessahaye said.

On May 4, 2017, Fessahaye said she again contacted Airbnb to report the false review.

“I received a phone call from Airbnb on or around 11:20 a.m. I notified them that the review was false and discriminatory. The Airbnb representative reviewed the messages between the host and myself and agreed that it was false and that I did not make any threats. The representative then agreed to delete the review from my profile and report the incident for an investigation. I asked if I would be notified of the outcome and was told that I would not be as it was confidential,” Fessahaye said.

Fessahaye said, “I was not satisfied with the outcome, but knew that I exhausted all options to remedy the situation with Airbnb.”

On Jan. 27, 2024, an Airbnb spokesperson wrote in an email to the Wisconsin Law Journal, “We take discrimination allegations incredibly seriously. We have no record of a report being made to us by this guest at the time.”

In a written response from Airbnb to Fessahaye on Jan. 30, 2024, the discrimination allegation was acknowledged.

On Jan. 31, 2024, an Airbnb spokesperson told the Wisconsin Law Journal, “We supported the guest in 2017 when they reported a listing issue after their stay had ended, and this included a partial refund from the Host and a coupon. We have no record of other reports from the guest or about the listing, which has not been active for several years. We enforce a strict nondiscrimination policy and take reports of discrimination incredibly seriously, and our team has reached out to the guest so we can look into this.”

However, the Wisconsin Law Journal verified Fessahaye’s allegation that the listing was still active and further obtained evidence from Fessahaye that she had reported discrimination on multiple occasions.

Fessahay provided the Wisconsin Law Journal with dozens of screenshot images of communication she had with Airbnb, outlining allegations of a pattern of discrimination and ultimately a scam that the FBI has been investigating.

The Wisconsin Law Journal reached out to both Airbnb and Hilton Hotels on Fessahaye’s, behalf. Both Hilton and Airbnb refused to accept responsibility despite the evidence provided to Airbnb. Airbnb also denied further compensation to Fessahaye despite evidence of the alleged discrimination and a reported scam that has been subject of an on-going Federal Bureau of Investigation inquiry, and ultimately arrests of other Airbnb hosts.

The Wisconsin Law Journal again emailed Airbnb on Feb. 5, Feb. 6 and Feb. 7, 2024, asking if they wished to revise their prior statements based on the evidence provided by Fessahaye and facts gathered by the Wisconsin Law Journal.

On February 8, 2024, Airbnb said they had “no record of a report of discrimination prior to you bringing this to our attention.”

An Airbnb spokesperson also said on Feb. 8, “On the listing — as we stated, this listing is no longer active. The link that you have is a cached link so you are still able to view it. If you go to the calendar feature, you’ll see that it states “Property turned off.” I’ve attached a screenshot. Again, this property has been turned off since 2017 and the Host no longer hosts on Airbnb.”

Airbnb also provided a screenshot showing the listing has since been turned off.

A DoubleTree by Hilton Grand Biscayne Bay spokesperson said, “The location you reference is part of The Grand condominium units that are privately owned by third parties. DoubleTree by Hilton Grand Biscayne Bay does not manage these condominiums and the hotel does not have access to information regarding stays in these units when booked via a third party. For any additional questions, we would recommend reaching out to the third party website where the individual made their reservation.”

Fessahaye said she has since contacted the FBI regarding her discriminatory experience.

As previously reported, a different Airbnb host, Shray Goel, the man allegedly behind a $8.5 million nationwide Airbnb scam impacting properties in the Badger state, was arrested, according to court documents obtained by the Wisconsin Law Journal.

Goel is one of two men indicted by a federal grand jury on federal fraud charges that allege a double-booking, bait-and-switch scam run through online property rental platforms, including Airbnb. The misleading listings and fraudulently canceled reservations included discrimination against Black people, Justice Department officials said Thursday.

Goel, 35, who previously lived in Milwaukee and currently resides in Miami, and Shaunik Raheja, 34, of Denver, were charged in a superseding indictment that accuses them of fraud in connection with more than 10,000 reservations linked to nearly 100 properties across 10 states.

Goel was initially charged in an indictment returned Dec. 13. He was arrested in Florida on Dec. 27 and was released on bond the following day. Raheja was added as a defendant in the superseding indictment. Both defendants are expected to be arraigned in United States District Court in Los Angeles, Justice Department officials noted.

GOEL owned and operated a short-term property rental business under various names, including Abbot Pacific LLC, marketing properties for short-term rental on Airbnb Inc., according to court documents. HomeAway Inc. was Goel’s company established with Vrbo.

Operations included more than 100 properties across the nation, including in Wisconsin.

According to court documents, Goel also maintained a place of residence in Milwaukee, among other locations nationally.

Other locations of Airbnb’s participating in the scam included California, Colorado, Florida, Iowa, Indiana, Ohio, Texas, Tennessee and Illinois.

When guests would leave a negative review about the hosts, Goel would then post negative reviews about the guests.

“If guests complained about a property or posted a negative review, defendant GOEL and others working with him and at his direction sometimes posted and caused to be posted false negative reviews about the guests,” according to court documents.

Federal agents said Goel took advantage of unsuspecting travelers.

“The defendants are charged with preying on unsuspecting travelers and robbing them of time and money, leaving them with no choice but to settle for inferior lodging at the last minute,” said Donald Alway, the assistant director in charge of the FBI’s Los Angeles Field Office.

“The conspiracy charge alleging that the defendants discriminated against potential renters based on their skin color is a reprehensible abuse which must not be tolerated in the United States. The FBI will work with our federal partners and with the private sector to ensure business practices in the vacation rental industry are free of fraud and bias,” Alway added.

According to court documents, Goel would pressure, threaten and insult Airbnb customer service representatives and demand to be transferred
to another representative or a supervisor when representatives indicated they were going to give refunds over defendant Goel’s objections, which sometimes resulted in representatives denying refunds to which guests were entitled.”

Also according to court documents, Goel double-booked by booking their rental properties twice, and also used bait-and-switch tactics with customers.

In some instances, Goel and associates intentionally “did not update a property’s calendar availability after the property had been booked, and they
continued to advertise the booked property as being available for rental on the already-booked dates,” according to court documents.

Goel and his associates allegedly tricked guests into accepting a replacement booking at an inferior alternative property, and then found ways to refuse to issue a refund to guests.

“Defendant GOEL operated a double-booking, bait-and-switch scheme on the rental platforms, secretly double-booking properties and then inventing fake last-minute excuses for cancelling overbooked guests or tricking them into switching to inferior replacements,” court documents stated.

Goel and his associates allegedly also ran “a secret bidding war to rent properties to the highest bidder by keeping all of their properties in any given area at maximum capacity, and by otherwise being able to choose among overbooked guests, and they often refused to agree to refunds for guests who were entitled to them,” according to court documents.

“In posting listings, defendant GOEL and others working with him and at his direction used false and misleading representations concerning the identities of the hosts, the addresses of the properties, the availability of the properties for rental on listed dates, the reserved status of properties for guests with confirmed bookings, the condition of the properties, and the veracity and completeness of the reviews of the properties and hosts, among other false and misleading representations,” officials said in court documents.

In some instances, Goel and associates allegedly listed properties that did not exist, court documents noted.

In 2015, his group was banned from Vrbo, according to court documents, which noted fake hosts utilized false identities and identification documents.

“Defendant GOEL and others working with him and at his direction used fake host names and in certain instances other people’s identities and identification documents (the “fake hosts” or “fake host accounts”), creating these fake host accounts throughout the course of the scheme and using other fake host accounts they had created dating back to at least 2015. They used the fake host accounts to conceal their own identities, to double-book properties, to hide negative reviews by de-listing and re-listing properties, to protect against properties being removed from the rental platforms (by having properties listed through multiple hosts), and to continue to list properties after they had been banned from Vrbo in 2015 because of repeated host cancellations and guest complaints. … Defendant GOEL and others working with him and at his direction would pretend to be the fake hosts in communications with guests and the rental platforms,” court documents noted.

During an interview with the Wisconsin Law Journal on Monday, an Airbnb spokesperson said, “Airbnb is built on trust, and bad actors have no place in our community. We supported the U.S. Attorney’s Office and the FBI throughout their investigation to help ensure accountability, and we are thankful to them for their work. We have taken multiple steps to strengthen our defenses against deceptive behavior, including measures like identity and listing verification which we believe will help further deter already rare instances of this type of activity.”

According to Airbnb officials, “significant investments” were made to deter bad actors and “crack down on already rare instances of fraudulent behavior.”

Airbnb says they have removed more than 157,000 suspicious listings as a result of the deployment of AI and machine learning. The company also removed an additional 59,000 listings due to suspicion of fraudulent behavior, such as bait and switch.

The hosting site also has the capability of verifying listings. In 2023, Airbnb rolled out identity verification, requiring all booking guests and primary hosts to complete an identity verification process. The platform also provides 24/7 guest support with a 24-hour safety line.