MBA Professionals Allege Fraud in Airbnb Arbitrage Business, Promising Higher Returns than Stock Market

Last Updated on February 12, 2024 by Robert C. Hoopes

Title: Investor’s Nightmare: Alleged Scam Involving HFA Leaves Individuals Struggling for Answers

In a shocking turn of events, Daryn Carr, an ambitious MBA graduate, revealed how he used the funds from his late mother’s pension to embark on an entrepreneurial journey in the crypto market and even started his own ATM business following her demise in 2020. Little did he know that his aspirations would lead him into the clutches of an alleged scam.

Carr’s encounter with Anthony Agyeman, advertised as an expert in arbitrage business, took place on Instagram. Agyeman’s venture, Hands-Free Automation (HFA), enticed Carr, promising him a guaranteed return on investment through property relisting on Airbnb at a higher price. Agyeman claimed to have exclusive contracts with property owners, making the opportunity seem even more appealing.

To join HFA, Carr had to shell out a substantial sum ranging from $20,000 to $30,000. However, Carr now alleges that the promised returns never materialized, suspecting that his money was instead used to fund Agyeman’s lavish lifestyle. Carr’s investment of $19,497 is currently under scrutiny as plaintiffs in a lawsuit against HFA seek $624,000 in damages.

HFA’s practices attracted the attention of regulators, and the Federal Trade Commission and the Department of Justice have cracked down on similar companies, accusing them of false advertising and selling faulty software. Interestingly, although Airbnb claims to have no knowledge of any contact from regulators regarding HFA, the vacation rental giant named HFA’s tactic of relisting properties at inflated rates on its platform as a banned practice.

Numerous individuals who used HFA’s services for booking travel have reported financial losses and faced difficulties finding alternative accommodations. Furthermore, HFA investors encountered problems with booking verification and received negative reviews from dissatisfied guests.

Meanwhile, Agyeman and his co-founder Shears were involved in multiple businesses, including an Amazon and Shopify automation business, a trucking business, and a line of vegan gummies. Agyeman boasted of having proprietary software to automate the arbitrage process, supposedly giving HFA an edge. The company attracted over 120 investors, who collectively paid close to $3 million for HFA’s automated businesses.

In 2022, Airbnb removed most, if not all, of HFA’s listings from its platform, citing undisclosed reasons. Allegedly, HFA resorted to forging documents to bypass Airbnb’s verification process, leading to severe consequences.

In response to the allegations and the ongoing lawsuit, Agyeman continues to promote his businesses on social media, with a new venture called OKU Capital catching the attention of unsuspecting individuals. Meanwhile, a similar business to HFA, named Wealthway, has emerged, claiming to offer “fully managed” and “automated” vacation rental businesses with minimal risk. However, Airbnb denies any affiliation with Wealthway, despite a video on the latter’s website seeming to show Agyeman engaging with an Airbnb executive.

As the legal battle unfolds and the affected individuals fight for justice, it is crucial for potential investors to exercise caution and conduct thorough due diligence when exploring similar opportunities.