The owner of the Royal Inn motel in Phoenix, Arizona, has been sentenced in federal court following a case involving prostitution and drug activities at the property. Varsha Patel, 57, from Chino Hills, California, received five years of probation, was ordered to forfeit the Royal Inn motel and $744,000, and must pay a $5,000 fine. Patel had previously pleaded guilty to using a facility of interstate commerce in aid of racketeering enterprises.
U.S. Attorney Timothy Courchaine stated: “When federal and local law enforcement team up it’s a force multiplier. In this case, the Phoenix Police Department, FBI and U.S. Marshals joined forces to shut down the Royal Inn, making an immediate and significant impact on public safety. Together, we will take decisive action to ensure Arizonans live in communities where families, schools, and businesses can thrive.”
FBI Phoenix Special Agent in Charge Heith Janke commented: “This sentencing is the culmination of several years of hard work by both the FBI and the Phoenix Police Department. The defendant knowingly and willingly operated the Royal Inn to facilitate the sexual exploitation of people and the sale of drugs. The defendant essentially operated a marketplace of illicit activity and profited for years while turning a blind and uncaring eye to the families that live in that neighborhood. That ended when the FBI seized the hotel, and this defendant will now pay the price for her actions.”
Phoenix Police Chief Matt Giordano said: “Our partnerships with federal agencies are critical in dismantling organizations that allow criminal behavior to affect the quality of life of our community members. By working together, we ensure that those who profit from illegal enterprises are held accountable. This case demonstrates that when law enforcement agencies work together, we can restore safety and security to the areas most impacted by crime.”
A search warrant was executed at 2510 W. Palo Verde Drive in September 2024 after an investigation led by both local police and federal agents revealed ongoing criminal activity at the location. Residents near the Royal Inn reported frequent prostitution and drug dealing affecting two nearby schools as well as businesses.
Following these efforts, U.S. Marshals closed off access to the premises after executing a search warrant.
United States Marshal Van Bayless added: “The United States Marshals Service is committed to supporting safe and stable communities across Arizona. Through strong collaboration with our federal and local law enforcement partners, we were able to address criminal activity that had long impacted this neighborhood. The closure of the Royal Inn reflects what can be accomplished when agencies work together toward a shared goal of protecting the public and restoring confidence in the communities we serve.”
The investigation was conducted by Phoenix Police Department, FBI Phoenix office, and U.S. Marshals Service; prosecution was handled by U.S. Attorney’s Office for District of Arizona.
For more information about ongoing cases or updates from U.S Attorney’s Office District of Arizona visit http://www.justice.gov/usao/az/
