The owner of the Royal Inn motel in Phoenix, Arizona, has been sentenced following a federal investigation into ongoing prostitution and drug activities at the property. Varsha Patel, 57, of Chino Hills, California, received a sentence of five years’ probation, was ordered to forfeit the Royal Inn motel and $744,000 in proceeds, and must pay a $5,000 fine. U.S. District Judge Susan M. Brnovich handed down the sentence on February 4, 2026. Patel previously pleaded guilty to using a facility of interstate commerce in aid of racketeering enterprises.
“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,” said U.S. Attorney Timothy Courchaine. “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 stated: “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 emphasized interagency cooperation: “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."
Authorities executed a search warrant at 2510 W. Palo Verde Drive—the site of Royal Inn—in September 2024 after an extended investigation by Phoenix police and FBI agents. The motel had become notorious locally for persistent criminal activity affecting nearby residents as well as businesses and schools who witnessed frequent prostitution and drug dealing.
After law enforcement searched and seized evidence from the premises, U.S. Marshals closed off access to end ongoing problems at that location.
United States Marshal Van Bayless commented: “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 led by Phoenix Police Department, FBI Phoenix office, and U.S. Marshals Service; prosecution was handled by the U.S Attorney’s Office for Arizona.
For further information about the U.S Attorney’s Office District of Arizona visit http://www.justice.gov/usao/az/
