Suel and Smith, COVID-Relief Fraud and Money Laundering, California 2023

COVID-Relief Fraud and Money Laundering Charges Bring San Diego Restaurant Owners to Justice

May 23, 2023, SAN DIEGO – Leronce Suel and RaVae Smith, owners of Rockstar Dough LLC and Chicken Feed LLC, have been charged with COVID-relief fraud and money laundering in connection with an alleged scheme to falsify applications for pandemic relief funds.

According to the indictment, Suel and Smith allegedly conspired to underreport over $1.7 million in gross receipts on Rockstar Dough LLC’s 2020 corporate tax return (Form 1120S) filed with the IRS in order to qualify for the COVID-related Paycheck Protection Program and Restaurant Revitalization Funding loans.

Suel and Smith allegedly made materially false certifications on loan applications regarding the use of the money. The indictment charges that Suel and Smith made substantial cash withdrawals from their business bank accounts to launder the fraudulently obtained funds. As part of the conspiracy, Suel and Smith allegedly concealed more than $2.4 million in cash at their residence.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, and is designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic.

“During an unprecedented public health emergency, the United States provided these loan programs to deliver economic relief to Americans,” said U.S. Attorney Randy Grossman. “This office will investigate and prosecute those who exploited the global pandemic to unjustly enrich themselves.” Grossman thanked the prosecution team and the IRS for their excellent work on this case.

Suel and Smith made their initial court appearance today before U.S. Magistrate Judge William V. Gallo. The case is being prosecuted by Assistant U. S. Attorney Christopher Beeler and Trial Attorney Julia M. Rugg from the Tax Division.

Charges against Suel and Smith include Conspiracy to Commit Wire Fraud, Wire Fraud, and Money Laundering, each carrying a maximum penalty of thirty years in prison, a $1 million fine, forfeiture, and restitution. Anyone with general information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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