FBI shut down Phoenix hotel suspected of money laundering

Sep 24, 2024 at 9:15 PM

Shutting Down a Notorious Hotspot: The Takedown of the Royal Inn

In a coordinated effort, the FBI and local law enforcement have dealt a significant blow to criminal activities in Phoenix, Arizona. The Royal Inn, a hotel that had long been a hub for drug trafficking, money laundering, and other illicit activities, has been seized and shut down, marking a major victory in the fight against organized crime in the region.

Dismantling a Notorious Criminal Enterprise

Unraveling the Web of Illegal Activities

The investigation into the Royal Inn's operations revealed a complex web of criminal activities, including drug sales, money laundering, and racketeering. The FBI's arrest of one individual and the indictment of five others, including the hotel's owner and manager, has shed light on the extent of the criminal enterprise that had taken root within the establishment.The charges brought against the individuals involved in the Royal Inn's operations are extensive, ranging from using a business to launder money and traveling to commit crimes, to the distribution of fentanyl and methamphetamine. The seizure of over $400,000 in cash further underscores the significant financial gains that were being generated through these illicit activities.

A Haven for Criminal Activity

According to law enforcement officials, the Royal Inn had long been a center for criminal activity in the 27th Avenue corridor of Northwest Phoenix. The hotel was described as a "haven for drug sales and commercial sex transactions," with the owners, Varsha and Nilam Patel, knowingly allowing these illegal activities to take place on the premises.The years-long collaboration between the Phoenix Police Department's Human Exploitation and Trafficking unit and the FBI has led to the identification of more than 1,000 victims associated with the criminal operations at the Royal Inn. This underscores the far-reaching impact of the hotel's involvement in the exploitation and trafficking of vulnerable individuals.

Community Efforts and Federal Support

The closure of the Royal Inn is the result of a concerted effort between local law enforcement and the federal government. While the Phoenix Police Department had been using its Real Time Crime Center and other resources to deter crime in the area, the federal support provided by the FBI allowed them to take the necessary steps to shut down the hotel entirely.City Councilmember Betty Guardado, who represents the district where the Royal Inn was located, acknowledged the long-standing efforts of the community to address the problems associated with the hotel, including prostitution, drug dealing, and rising crime rates. The collaboration between local and federal authorities has finally led to the successful closure of this notorious criminal hub.

Addressing the Ripple Effect

The shuttering of the Royal Inn is a significant victory, but law enforcement officials are aware that the impact of this action may extend beyond the hotel's immediate vicinity. As Assistant Chief of Police Ed Decastro noted, "Crime is like squeezing water. It's going to go somewhere else. We just have to find what that next place is going to be, and we'll start looking at that place and attacking those places accordingly."The department has vowed to remain vigilant and monitor for any potential displacement of criminal activities to other areas, ensuring that the impact of the Royal Inn's closure is felt across the broader community. This proactive approach underscores the commitment of law enforcement to maintain a sustained effort in combating organized crime and protecting the safety and well-being of the residents of Phoenix.