FBI closes Royal Inn, hotel in Phoenix due to money laundering suspicion

The FBI arrested one man, charged five others and seized a Phoenix hotel along the I-17 corridor Tuesday morning on drug trafficking, money laundering and organized crime charges.

The U.S. Attorney's Office filed charges against Royal Inn owner Varsha Patel, manager Nilam Patel and four others on various counts.

According to Phoenix police, the FBI seized more than $400,000 in addition to the hotel.

The charges include using a business to launder money, traveling to commit crimes or support illegal activities, distributing fentanyl, distributing methamphetamine and attempting to fraudulently apply for COVID-19 relief funds.

At a press conference on Tuesday, law enforcement authorities described the Royal Inn as a center of criminal activity and said investigations have been ongoing there for years.

“Today's seizure of the Royal Inn will go a long way in reducing crime in this area as it was a major hub where a lot of activity occurred,” said Deputy Police Chief Ed Decastro.

According to U.S. District Attorney Gary Restaino, the Patels knew that illegal activities were taking place on the property.

The two are accused of allowing drug trafficking and sex work on their property and laundering money from these activities, he said.

“The Royal Inn was a haven for drug trafficking and commercial sex operations in the 27th Avenue corridor of northwest Phoenix for many years,” Restaino said.

The other four people charged with selling drugs there, according to Restaino, include Anthony Curtis, Otis Childers, Chauntelle Mills and maintenance worker Leonardo Guerrero.