ANCHORAGE, Alaska — Two Anchorage residents are facing serious federal charges after authorities say they ran a drug trafficking and prostitution operation out of a Spenard-area hotel.
Kyoung Seo, 62, the owner of the Chelsea Inn Hotel, and Chantel Fields, 36, a hotel employee, were arrested Friday and charged with conspiracy to use the hotel for drug distribution and related illegal activity, according to U.S. Attorney for Alaska Michael Heyman.
At a Monday press conference, Heyman said Fields used the hotel to store and sell narcotics, while also directing buyers to dealers residing at the hotel. Both Seo and Fields allegedly charged a $20 admission fee for people entering the hotel to buy drugs or engage in prostitution.
The arrests followed a multi-year federal investigation. The FBI began monitoring drug activity at the Chelsea Inn in 2020, culminating in a raid on Friday that resulted in the shutdown and seizure of the hotel — the first such federal seizure of a hotel in Alaska linked to drug activity.
During the raid, agents also searched the South Anchorage homes of both Seo and Fields, seizing:
11 firearms, some reported stolen
Over 1,000 rounds of ammunition
More than a pound of suspected drugs, including fentanyl
$45,000 in suspected drug money
According to FBI Special Agent Rebecca Day, the drugs are believed to have been imported from Mexico, suggesting a possible cartel connection, although immigration links are not currently confirmed.
The operation is part of a broader national crackdown called “Operation Take Back America,” focused on disrupting cartel operations, drug trafficking, and related violence.
The Chelsea Inn had long been known as a hotspot for crime, with over 1,000 police service calls to the area since 2020. Anchorage Police Chief Sean Case said the hotel had a “significant negative impact” on surrounding neighborhoods and businesses.
A court document revealed that the investigation began following the October 2020 murder of Duane Fields, Chantel Fields’ father and a former employee of the hotel. Surveillance footage reportedly showed Chantel removing firearms and suspected drugs from her father’s body before police arrived on the scene.
Heyman said additional arrests are expected as the investigation continues.
