Historic Oregon Hotel in Foreclosure After Owners Report Major Fraud Losses

The Prospect Hotel, a Southern Oregon landmark operating for more than a century, is facing foreclosure after its owners allege they were victims of a significant fraud scheme. Brianna and Eli Braden say suspicions arose when a $45,000 check for mattresses failed to result in a delivery, and the vendor had no record of the sale. Further investigation revealed what they describe as a pattern of theft and financial deception.

Authorities in Jackson County have indicted a former business associate on charges of theft and forgery. The alleged misconduct has forced the hotel to close, led to lawsuits, loan defaults, and the garnishment of the business’s bank accounts. The closure has had a major impact on the small town of Prospect, where the hotel has long been a key tourist stop for visitors to Crater Lake National Park and a primary source of local jobs.

The Bradens purchased the property just last year with help from investors, and say their relationship with the associate was based on years of personal trust. They are now gathering stories from other possible victims through the hotel’s website.

The foreclosure marks a severe blow to the community and to the Bradens, who describe the experience as devastating for their staff and neighbors. The legal case is ongoing, and the property’s future remains uncertain.