Santa Monica police arrested a hotel owner after he purchased what police say he believed to be stolen property Monday, July 23rd. The arrest of Saeed Farzam, who owns the Pavilion Hotel, 2338 Ocean Park Blvd., is part of an ongoing investigation into allegations of drug activity at or near the hotel, according to police.

Santa Monica narcotics officers served arrest and search warrants at the hotel during the police operation. Farzam was ar- rested after he purchased what police allege he thought was stolen electronics equipment from an undercover police officer during a sting operation.

Additional evidence was discovered at Farzam’s Santa Monica residence after a search warrant was served there, police said.

In addition to the owner’s arrest, ten other people were arrested at the motel on various narcotics-related crimes and parole and probation violations.

The City of Santa Monica Fire Department, Building and Safety Division, Code Compliance and Los Angeles County Heath Department conducted an inspection of the motel, pursuant to an administrative warrant that had been issued. The inspectors determined that several code violations had occurred and subsequently posted a “yellow tag” notice on the building.

A hotel or motel that has been yellow-tagged is prohibited from renting rooms at the site until the infractions are repaired, and tenants are allowed to access their motel rooms only to obtain their personal possessions.

Farzam was booked at the Santa Monica Jail on charges of receiving stolen property. His bail was set at $20,000.