Executive Summary
- Varsha Patel sentenced to five years probation for aiding racketeering enterprises.
- Court orders forfeiture of the Royal Inn motel property and $744,000 in cash.
- Defendant pleaded guilty following an FBI investigation into drug trafficking and prostitution.
- U.S. Marshals shuttered the property in September 2024 following federal raids.
PHOENIX — Varsha Patel, the 57-year-old owner of the Royal Inn motel in Phoenix, has been sentenced to five years of probation and ordered to forfeit substantial assets following a federal investigation into criminal enterprises operating at the property. The sentencing follows Patel’s guilty plea to charges related to facilitating racketeering activities.
According to the U.S. Attorney’s Office for the District of Arizona, Patel was sentenced earlier this month in federal court. In addition to the probation term, the court ordered the forfeiture of the motel property, located near Interstate 17 and Bethany Home Road, as well as $744,000 in monetary assets. Patel was also ordered to pay a separate fine of $5,000. The legal proceedings culminated after Patel pleaded guilty to using a facility of interstate commerce in aid of racketeering enterprises.
The charges stemmed from a coordinated investigation involving the Federal Bureau of Investigation (FBI) and local authorities. In September 2024, FBI agents executed search warrants at the Royal Inn, investigating allegations of drug trafficking and prostitution. Following the raid, the U.S. Marshals Service secured and shuttered the establishment. FBI Phoenix Special Agent in Charge Heith Janke stated that the defendant "knowingly and willingly operated the Royal Inn to facilitate the sexual exploitation of people and the sale of drugs," describing the business as a "marketplace of illicit activity" that operated for years to the detriment of the surrounding community.
Judicial & Community Impact
The forfeiture of the Royal Inn and the significant financial penalty underscore the federal strategy of utilizing asset forfeiture laws to dismantle the infrastructure supporting organized crime. By seizing the physical property used to facilitate illegal acts, authorities remove the operational base for trafficking networks, addressing both the criminal enterprise and the public nuisance concerns of local residents. This case establishes a precedent for holding property owners criminally and financially liable when their establishments are knowingly used to aid racketeering activities.
It is important to note that while the defendant has entered a guilty plea in this case, all individuals named in criminal investigations are generally presumed innocent until proven guilty in a court of law.
