2 plead guilty in Super 8 motel fraud case

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by Associated Press

kgw.com

Posted on November 19, 2013 at 7:18 PM

MEDFORD, Ore. -- A former partner in a Super 8 motel franchise has pleaded guilty to federal charges of wire fraud and filing a false tax return.

The Oregon 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 co-partners in Montana.

The agency says Johnson provided false information to the partners and the scheme diverted almost $500,000 from the motel to his personal use.

Johnson hired his girlfriend, Diana Arredondo, as motel manager and she pleaded guilty to filing a false tax return in connection with the case.

A Medford judge is scheduled to sentence Johnson and Arredondo in February.

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