- Associated Press - Wednesday, April 2, 2014

MEDFORD, Ore. (AP) - A former partner in a Super 8 motel franchise has been sentenced to nearly three years in prison for an embezzlement and tax fraud scheme.

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 partners in Montana.

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

He was sentenced Monday after pleading to guilty last fall to tax fraud and wire fraud.

Johnson hired his girlfriend, Diana Arredondo, as assistant motel manager, and she pleaded guilty to tax fraud.

She was sentenced to 10 months in prison.

Both were ordered to pay restitution.


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