ARIZONA NEWS

Royal Inn Hotel searched and shut down by law enforcement for allegedly allowing criminal activity

Sep 24, 2024, 4:06 PM | Updated: 4:11 pm

Phoenix Police vehicle...

A joint law enforcement effort searched and shutdown the Royal Hotel Inn for allegedly allowing prostitution and drug trafficking. (Facebook Photo/Phoenix Police Department)

(Facebook Photo/Phoenix Police Department)

PHOENIX – A joint law enforcement effort searched and shut down a Phoenix hotel accused of allowing prostitution and drug trafficking, authorities announced.

On Tuesday around 6 a.m., the FBI, U.S. Marshal Service and Phoenix Police Department executed search seizure warrants of the Royal Inn Hotel, located near Bethany Home Road and 27th Avenue.

A 44-count indictment against the hotel’s owners, operators and corporate entity were unsealed by the United States District Court on Tuesday.

Six and one corporate entity were named in the indictment, according to the U.S. Attorney’s Office for the District of Arizona.

  • Varsha Patel, 56, of Chino Hills, California, the owner of Royal Inn, was charged with two counts of using a facility of interstate commerce in aid of racketeering, one count of maintaining a drug premises and 34 counts of promotional money laundering. Patel was charged with multiple counts of making false statements to obtain a small business administration loan.
  • Sarang Hospitality LLC, aka Royal Inn, the Arizona corporation through which the hotel does business, was similarly charged with two counts of using a facility of interstate commerce in aid of racketeering, one count of maintaining a drug premises and 34 counts of promotional money laundering.
  • Nilam Patel, 54, of Phoenix, the live-in operator and day-to-day manager of the Royal Inn, was also charged with two counts of using a facility of interstate commerce in aid of racketeering, one count of maintaining a drug premises and 34 counts of promotional money laundering.
  • Four other individuals were charged with distribution of fentanyl and methamphetamine for drug dealing at the Royal Inn: Anthony Curtis, 42, of Buckeye; Otis Childers, 31, of Phoenix; Chauntelle Mills, 24, of Phoenix; and Leonardo Guerrero, 49, of Phoenix.

Guerrero was the only person to be arrested. Arrest warrants were presented for the other suspects.

The indictment alleges that Varsha, Nilam and Sarang Hospitality LLC, rented rooms to people involved with prostitution, drug dealing and drug using. They are claimed to have known illegal activities were taking place but despite warnings from Phoenix police, they continued their operations.

The defendants are accused of:

  • Renting rooms to persons who overtly engaged in prostitution and to persons who distributed illegal drugs
  • Directing the sex workers to attract sex buyers off the property and to walk separate from the sex buyer while going to the room
  • Directing the sex workers, pimps and drug dealers to park off the property
  • Alerting sex workers, pimps and drug dealers of law enforcement presence
  • Failing to request a credit card together with a government-issued identification, in order to rent a room
  • Failing to evict persons engaged in prostitution and drug dealing, thereby allowing lengthy stays at the Royal Inn without detection
  • Failing to call the police when criminal activities were occurring.

What sentences could the defendants in the indictment face if convicted?

  • Using a facility of interstate commerce in aid of racketeering carries a maximum penalty of five years in prison and a $250,000 fine.
  • A conviction for maintaining a drug premises carries a maximum penalty of 20 years in prison and a $500,000 fine.
  • A conviction for promotional money laundering carries a maximum penalty of 20 years in prison and a $500,000 fine.
  • A conviction for making false statements to obtain a small business administration loan carries a maximum penalty of two years in prison and a $250,000 fine.
  • A conviction for distribution of fentanyl and methamphetamine carries a maximum penalty of 20 years in prison and a $1,000,000 fine.

We want to hear from you.

Have a story idea or tip? Pass it along to the KTAR News team here.

Comments

Comment guidelines: No name-calling, personal attacks, profanity, or insults. Please keep the conversation civil and help us moderate comments by reporting abuse.
comments powered by Disqus

Arizona News

Kari Lake has been gaining ground on Ruben Gallego since Election Day in Arizona's Senate race....

KTAR.com

Democrat Ruben Gallego stretches lead over Republican Kari Lake in tight Arizona Senate race

Democratic U.S. Rep. Ruben Gallego padded his lead following the latest ballot drop over Republican Kari Lake.

46 minutes ago

Arizona's 6th Congressional District 2024 election updates...

KTAR.com

Republican Juan Ciscomani neck and neck with Democrat Kirsten Engel in race for Arizona’s CD6

The race for Arizona Congressional District 6 between Rep. Juan Ciscomani and Democratic rival Kirsten Engel has been especially nail-biting.

47 minutes ago

David Schweikert and Amish Shah...

KTAR.com

Incumbent David Schweikert wins reelection in Arizona CD1 race

Republican Rep. David Schweikert won reelection over Democrat Amish Shah in the race for Arizona Congressional District 1.

49 minutes ago

Books lined up in a row...

Payne Moses

Maricopa County board earmarks $5M for larger Litchfield Park library

A new library will be built in Litchfield Park after the Maricopa County Board of Supervisors approved $5 million to cover construction costs on Wednesday.

5 hours ago

A man in a wheelchair is dead after being hit by a vehicle in south Phoenix on Saturday evening....

David Veenstra

Man in wheelchair dies after being hit by SUV in south Phoenix

A man in a wheelchair is dead after being hit by a vehicle in south Phoenix on Saturday evening.

6 hours ago

Arizona congressional races...

KTAR.com

Arizona’s 9 congressional seats are up for grabs; who is winning each race?

One Arizona congressional race remained highly competitive as of Thursday night, while the state's eight other U.S. House contests were pretty much settled.

8 hours ago

Sponsored Articles

...

Midwestern University

Midwestern University Clinics – Providing Comprehensive, Thorough and Unrushed Healthcare to the Valley Community

With so many options for healthcare in the Valley, why should you choose a clinic that has graduate medical students integrated into the patient experience?

...

Collins Comfort Masters

Collins Comfort Masters: Leading the Way in HVAC and Plumbing Services in Arizona

Tempe, AZ – Since its inception in 1985, Collins Comfort Masters has been a cornerstone in the HVAC and plumbing industry in Phoenix and the surrounding Valley.

...

Dr. Shanyn Lancaster, Family & Sports Medicine physician, Midwestern University Comprehensive Care Clinic – Central Phoenix

Exercise is truly your best medicine

“You never slow down, you never grow old”. – Tom Petty

Royal Inn Hotel searched and shut down by law enforcement for allegedly allowing criminal activity