On August 1, 2016, United States Attorney for the Western District of North Carolina, Jill Westmoreland Rose, announced a settlement agreement with the former owners of a Red Roof Inn, located at 3300 Queen City Drive, Charlotte, North Carolina. The former owners of the establishment were subject to a civil forfeiture lawsuit for permitting child sex-trafficking and transportation of minors for criminal sexual activity to occur within its facility. The owners of the Red Roof Inn and its staff were allegedly involved with promoting prostitution of minors and accepted money in exchange for not notifying law enforcement of the sex trafficking activity.
The civil complaint filed on September 17, 2015 sought the “forfeiture of all right, title, and interest” in the hotel property. Criminal acts and other activity related to sex trafficking is considered a nuisance violation under a Charlotte, North Carolina city ordinance. Accordingly, the city is permitted to use the threat of seizure to motivate property owners to correct or discontinue the nuisance. Mark Newbold, counsel for the Charlotte-Mecklenburg Police Department, has acknowledged the increased efforts made by the city and local police department to crack down on such nuisances, particularly those involving sex trafficking or commercial sexual exploitation. In fact, the city has been investigating nuisance activity place at the Red Roof Inn since 2012. Investigators found that the former hotel owners did not take sufficient steps to address the city’s concerns, so the city took action and got the federal court involved. (Federal courts have original jurisdiction for the enforcement of any forfeiture actions. 28 U.S.C. § 1355.)
In the settlement agreement, the former owners agreed to pay a fine of $175,000 and forfeit their entire interest in the property. Attorney Westmoreland Rose made the following statement about the case: “Anyone who turns a blind eye to illegal activities taking place on their property to take notice. Whether via a criminal indictment or a civil action, we will use every tool in our arsenal to dismantle criminal enterprises, combat drug trafficking and sex trafficking, and bring relief to communities afflicted by violent crimes.”
The CSE Institute applauses the work of Attorney Westmoreland Rose and the law enforcement authorities in Charlotte, North Carolina for holding hotels and their owners accountable for allowing sex trafficking to take place on hotel property. The Western District of North Carolina has set a clear example that the hotel industry can and will be held accountable for allowing sex trafficking to occur on their properties. The CSE Institute encourages state and Federal prosecutors to follow their lead. Read the CSE Institute’s Policy on Criminal and Civil Liability for Hotels.