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Restaurant Owner Convicted of Tax and COVID-Relief Fraud Schemes in San Diego
A federal jury convicted San Diego restaurant owner Leronce Suel of wire fraud, conspiracy, and tax crimes for providing bogus information in applications for COVID relief programs and failing to report more than $1.7 million in revenue to the IRS.
Suel was the majority owner of Rockstar Dough LLC and Chicken Feed LLC, both of which operated restaurants in the San Diego area. The jury found that Suel conspired with his business partner to underreport over $1.7 million in gross receipts on Rockstar Dough LLC’s 2020 corporate tax return and COVID relief applications.
Suel’s businesses fraudulently received approximately $1,773,245 in COVID-related Paycheck Protection Program loans and Restaurant Revitalization Fund grants by falsely certifying his businesses were eligible and that his businesses would use the money appropriately. Instead of using the COVID-19 relief program funds on eligible expenses, Suel and his co-conspirator made substantial cash withdrawals from their business bank accounts and purchased a home in Arkansas.
As part of their conspiracy, Suel concealed more than $2.4 million in cash in his bedroom. Suel failed to report income he received from his business, including millions of dollars in cash and personal expenses paid for by the businesses. In 2023, Suel also filed original and amended tax returns for prior years that included false depreciable assets and business losses.
“Shirking taxes, lying to the IRS, and stealing COVID relief funds – these are not victimless crimes,” said U.S. Attorney Tara McGrath. “This jury saw through greed and deceit to ensure protection of federal programs designed to support our infrastructure and serve those in need.”
Leronce Suel, 46, of San Diego, was convicted of the following crimes:
Wire Fraud Conspiracy – Title 18, U.S.C., Section 1349
Wire Fraud – Title 18, U.S.C., Section 1343
Conspiracy to Defraud the U.S. – Title 18, U.S.C., Section 371
Tax Evasion – Title 26, U.S.C., Section 7201
Filing False Tax Returns – Title 26, U.S.C., Section 7206(1)
Failure to File –Title 26, U.S.C., Section 7203
Suel stipulated to forfeit $1,466,918 from the $2.4 million seized as proceeds traceable to his pandemic relief fraud. Suel is scheduled to be sentenced on December 13, 2024.
This case is being prosecuted by Assistant U.S. Attorney Christopher Beeler and Trial Attorney Julia Rugg of the U.S. Department of Justice Tax Division.
The IRS Criminal Investigations agency investigated this case.
Key Facts
- State: California
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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