A Southern Oregon couple has been sentenced to federal prison for their role in a massive embezzlement and tax fraud scheme that left their hotel partners in the dark.
Kenneth Johnson, 62, and Diana Arredondo, 56, both of Central Point, Oregon, were found guilty of defrauding their partners in the Super 8 Hotel in Central Point, Oregon, where Johnson was a partner and daily operations manager since 2005.
According to court documents, Johnson and Arredondo operated the hotel from October 2005 to 2011, during which time Johnson engaged in a scheme to defraud his partners by providing false information about the hotel’s revenue. He diverted a total of about $500,000, sharing some of the tainted funds with Arredondo.
In addition to embezzlement, both defendants filed fraudulent income tax returns, failing to report the money embezzled from the hotel.
Johnson pleaded guilty to tax fraud and wire fraud, while Arredondo pleaded guilty to tax fraud.
On Monday, March 31, 2014, Senior U.S. District Judge Owen M. Panner sentenced Johnson to 33 months in federal prison and Arredondo to 10 months in prison.
Johnson was ordered to pay $561,101.05 in restitution, while Arredondo was ordered to pay $16,229.00 in restitution.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation, and was prosecuted by Assistant U. S. Attorney Judith Harper.
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Key Facts
- State: Oregon
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release ↗
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