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.