Yes, The Guys Using Legal Loopholes To Screw Over An AirBnB Host Likely Also Scammed Kickstarter Backers

from the this-happens dept

Recently, Russ Roberts had YCombinator's Sam Altman on his absolutely wonderful podcast Econtalk, and the discussion is fantastic and worth listening to (which is true of most Econtalk episodes). Among many interesting and thought-provoking points that Altman made about innovations and new startups like AirBnB and Uber was that with those kinds of new solutions there were always the growing pains -- the stories of crazy drivers or the AirBnB guests throwing crazy house parties. Those stories generate a lot of attention, and they tend to highlight issues where service can be improved, but they do little to slow down the momentum of those startups (in some cases, the publicity actually helps). The simple fact is that there are some people who will always abuse the system, but that alone doesn't deny the amazing opportunities created by some of these services.

But still, with the stories of scams and loopholes, there are always going to be some people who actively seek to take advantage of them. That's just something that happens. These are the same people who take advantage of loopholes in traditional ways as well. I knew a guy in college who bought a really expensive TV, but always returned it right before the 6-month money-back guarantee was up -- only to buy another TV to do the same thing over and over again. Same guy would also figure out ways to drop certain classes strategically to get better grades. He basically spent his life looking for loopholes. Such people exist, and apparently two Russian brothers who are good at that sort of thing are getting some attention for trying to effectively build some scams off of two popular online platforms these days: AirBnB and Kickstarter.

The AirBnB side of the story got attention first. Apparently, one of the brothers, used AirBnB to "rent" a condo in Palm Springs for 44 days, paying the first month in advance. However, he then stopped payments, and made use of a California renters/squatters law that says if you reside in a place for more than 30 days you're a "tenant" and if the owner wants to get rid of you they have to go through (very complicated) evictions. It seems clear that this was the plan all along.

A few days later, however, it came out that the brothers staying at the condo were Maxksym and Denys Pashanin, who also had a history of running a big Kickstarter project that raised $40,000, but hasn't delivered. They've also set up a second Kickstarter campaign, but (not surprisingly) it seems to be having trouble finding backers.

Making the situation even more bizarre is that Maksym appears to have logged into the Kickstarter account for the first game to comment on the story by joking about the situation: In the end, though, some are trying to make a big deal out of what this means for "the sharing economy" or for these kinds of new platforms that are all the rage online these days. And the answer is: absolutely nothing. It may provide some details on how these companies can do better fraud prevention in the future, but the simple fact is that there are always people who are going to look to pull scams. That was true a thousand years ago and it was true a hundred years ago and it was true ten years ago. It's still true today. In fact, the difference might be that these guys, in pulling these scams, are getting plenty of attention for it. Their latest Kickstarter campaign is a dud, and it seems likely that they'll now have this reputation stuck to them going forward.

Of course, the other possibility is to use some of these new platforms to get them back as well. Forbes reporter Kash Hill has already suggested (jokingly, we're sure) perhaps using TaskRabbit to beat these guys up...

Filed Under: crowdfunding, denys pashanin, eviction, maxksym pashanin, sharing economy, tentant laws
Companies: airbnb, kickstarter