Umesh Oza, who managed two hotels in Oceanside city in California, was charged last week with racketeering conspiracy under laws traditionally used for organised-crime syndicates and mobsters, the San Diego Tribune reported.
He is accused of providing a location for the alleged crimes to take place and employing a gang member as "security", the indictment states.
"Not only are we targeting the traffickers and customers, but we are also going after the businesses that facilitate this type of gang activity," said Alana Robinson, the acting federal prosecutor for Southern California in San Diego.
Oza "provided a safe haven" for the alleged members of the Westside Crips criminal street gang to carry out drug deals and prostitution, according to the prosecution.
Eleven alleged West Crips gangsters were also charged in crimes that prosecutors say took place from 2004 to 2016.
While prosecutors only identified the facilities Oza managed as "two national brand hotels", the report said they were the Coast Inn and a Motel 6.
Some of the gang members charged sold narcotics while others managed prostitutes and transported them all over the country, according to prosecutors.
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