Shreeji Hospitality Queen City, LLC, Sex Trafficking, North Carolina 2015

In a shocking turn of events, the former Red Roof Inn property located at 3300 Queen City Drive in Charlotte, North Carolina, has been sold to a third party after a lengthy sex trafficking investigation. Shreeji Hospitality Queen City, LLC, the former owner of the motel, has reached a settlement agreement with the United States government, effectively dropping all sex trafficking charges against the company.

According to federal forfeiture laws, the government can seek the forfeiture of properties used to commit or facilitate the commission of certain offenses, including sex trafficking. In this case, the government alleged that the property owners or their managing agents had been repeatedly advised by the Charlotte Mecklenburg Police Department of the ongoing sex trafficking activity at the motel, but failed to take reasonable steps to reduce the crime.

The complaint, filed in September 2015, alleged that the property had been used to commit or facilitate the commission of federal violations of law, including sex trafficking of minors, the transportation of minors for criminal sexual activity, and felony drug trafficking crimes. Despite being advised of specific measures to reduce criminal activity, the crime continued at the motel.

As part of the settlement agreement, Shreeji Hospitality Queen City, LLC has agreed to sell the property to a third party and has also signed a federal settlement agreement. The new owner has agreed to invest $300,000 in the property to make improvements, seek affiliation with a national chain hotel, and impose specific rules and procedures to reduce crime, including installing a 24-hour video surveillance security system and ensuring the property does not rent rooms by the hour.

Furthermore, Shreeji Hospitality Queen City, LLC has agreed to pay $175,000 of the proceeds from the sale of the property to the United States government. This payment will effectively dismiss the civil case against the company.

In a statement, U.S. Attorney Jill Westmoreland Rose commended the Federal Bureau of Investigation, the U.S. Marshals Service, and the Charlotte Mecklenburg Police Department for collaborating to achieve this outcome. This case serves as a reminder that the government will take action against properties used for illicit activities and will seek to hold owners accountable for failing to reduce crime.

The civil complaint, settlement agreement, and related filed documents are available online at U.S. v. Real Property Located at 3300 Queen City Drive, Charlotte, North Carolina, a/k/a Red Roof Inn, 3:15-CV-429.

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