Pubdate: Wed, 21 Mar 2001 Source: Clarion-Ledger, The (MS) Copyright: 2001 The Clarion-Ledger Address: P.O. Box 40 Jackson, MS 39205-0400 Fax: (601) 961-7211 Feedback: http://www.clarionledger.com/about/letters.html Website: http://www.clarionledger.com/ Author: Sherri Williams SCOTTISH, BUDGET INNS PART OF MONEY-LAUNDERING PROBE The federal government seized two U.S. 80 motels Tuesday after a one-year investigation led to money-laundering indictments against the property owner and his business partners. The Scottish Inn at 2263 U.S. 80 and Budget Inn, two doors down, at 2275 U.S. 80, were locked after Paul O. Johnson, Gary C. Fuller and Don E. Grant, all of Springfield, Mo., pleaded guilty to a scheme in which the three attempted to use the motels and another motel Johnson owns in Branson, Mo., to launder $3.5 million in drug money. Assistant U.S. Attorney Bob Anderson said an undercover informant told authorities the three were interested in using Johnson's Missouri-based Empire Mortgage Co. to launder money. "The confidential informant then brought an undercover customs agent who posed as a drug dealer from the Virgin Islands to them," he said. "The three were going to give the agent the deeds for the motels in exchange for the $3.5 million. Instead they got an arrest warrant." The three were arrested last July after a year-long, multi-agency investigation led by U.S. Customs, 30 undercover meetings and several recorded phone calls. Anderson said as a part of the scheme the property changed from Johnson's possession and among Fuller and Grant several times. Fuller was an employee. "The title history of the property looks like a shell game," Anderson said. "Last year the ownership changed a couple of times, and Paul Johnson was at the bottom of all of those transactions. He tried to make it appear as if someone else was in control but he was actually controlling the property." Johnson has owned the Budget Inn since 1955 and the 86-unit Scottish Inn since 1977. He has owned the Pier 76 Motel in Branson since 1983, Anderson said. The properties now belong to the government and could be turned over to law enforcement agencies, Anderson said. U.S. District Judge Henry T. Wingate will sentence the three men on federal money laundering charges on March 27. U.S. Customs agents spent Tuesday checking rooms for occupants, changing locks and putting no trespassing signs on doors. Anyone on the property will be arrested. Guests at the Scottish Inn were ordered to vacate last Friday. U.S. Customs Special Agent Ryan Spradlin, chief investigator of the case, said the Budget Inn, which had more than 190 rooms, has been vacant since July 2000. The motel in Branson is still operating but is subject to close in the next four weeks, Spradlin said. Acting Jackson Police Chief Jim French said the motel closings should help eliminate crime. "They have been a site where prostitution and drugs have been sold," he said. "They (law enforcement agencies) have taken what has been a source of criminal activity and shut it down. They have taken a large part of Highway 80 and made it safe again." Carl Murphee, manager of the Midas Service Center located between the two motels, said a constant steady flow of prostitutes and police cars bothered his customers. "It's bad when people are sitting and getting their cars repaired and they see 50 cars going in and wonder why, but when you see the clientele coming out of there you know what's going on," he said. Raphael Smith, who had worked as a security guard at both motels for the past eight months, said he was aware of crime in the U.S. 80 area, but he never witnessed any illegal activity at the motels. Smith said the motel closings would help reduce crime, but crime "doesn't have to happen in a motel, it happens in regular houses and other areas, too." Willie Stewart's grandson attends Isable Elementary School, less than a mile from the motels. Now that they have been closed, Stewart said he will feel more at ease about his grandson being in the area. "Once they get the motels and everything closed down I think the area will be safe again," said Stewart. - --- MAP posted-by: Kirk Bauer