A federal jury in San Diego has found Leronce Suel, a California restaurant owner, guilty of multiple offenses, including wire fraud, conspiracy, and tax crimes. These charges relate to his involvement in fraudulent schemes aimed at exploiting COVID-19 relief programs and filing false tax returns.
Evidence presented during the trial revealed that Suel, majority owner of Rockstar Dough LLC and Chicken Feed LLC, operated several restaurants in the San Diego area, such as Streetcar Merchants in North Park. He was implicated in a conspiracy to underreport over $1.7 million in gross receipts on Rockstar Dough’s 2020 corporate tax return and associated COVID-19 relief applications.
Suel’s businesses erroneously obtained $1,773,245 from COVID-19 relief funds, intended to support businesses affected by the pandemic, including the Paycheck Protection Program and the Restaurant Revitalization Fund.
The investigation uncovered that Suel, along with a co-conspirator, misappropriated these relief funds for personal gain, including substantial cash withdrawals, a home purchase in Arkansas, and hoarding over $2.4 million in cash at his residence.
In addition to his fraudulent claims for relief, Suel failed to file necessary tax returns for 2018 and 2019 and did not submit personal tax returns from 2020 to 2022, which should have disclosed significant income from his businesses.
In 2023, he filed false tax documents for several years, including personal returns for 2016 and 2017, which inaccurately reported depreciable assets and business losses, leading to a total tax loss to the IRS of $1,292,976.
Suel was convicted on several counts, including wire fraud, conspiracy to commit wire fraud, tax evasion, and filing false tax returns. However, he was acquitted of money laundering charges. Following his conviction, Suel agreed to forfeit $1,466,918 in cash.
Suel’s sentencing is set for December 13, 2024, where he faces severe penalties, including up to 30 years in prison for each wire fraud count, five years for each tax evasion count, and additional sentences for other tax-related offenses. A federal district court judge will impose a sentence based on U.S. Sentencing Guidelines and relevant factors.
This case was brought to light through an investigation by IRS Criminal Investigation.
