Former Central Point motel operators sentenced in federal fraud case
A former partner in a Super 8 motel franchise in Central Point has been sentenced to nearly three years in prison for an embezzlement and tax fraud scheme.
The U.S. Department of Justice says 62-year-old Kenneth Johnson ran the Central Point motel's daily operations from 2005 until 2011 and reported financial figures to partners in Montana.
He hired his girlfriend, Diana Arredondo, 56, as assistant motel manager, federal prosecutors said in a news release today about this week's sentencing.
Johnson provided his partners with false information about the amount of cash collected by the hotel and diverted almost $500,000 from the motel to his personal use, sharing the money with Arredondo. Neither of them reported their ill-gotten gain on their tax returns, prosecutors said in the news release.
He was sentenced Monday after pleading to guilty last fall to tax fraud and wire fraud. In addition to prison time, he was ordered to pay $561,100 in restitution.
Arredondo pleaded guilty to tax fraud. She was sentenced to 10 months in prison and ordered to pay $16,229 in restitution.
— Staff and wire reports