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California Restaurant Owner Convicted of Tax and COVID-19 Fraud Schemes
A federal jury in San Diego has convicted Leronce Suel, a California restaurant owner, of multiple charges, including wire fraud, conspiracy, and tax crimes, for his role in schemes to defraud COVID-19 relief programs and file false tax returns.
According to court documents and evidence presented at trial, Suel, the majority owner of Rockstar Dough LLC and Chicken Feed LLC, operated several restaurants in the San Diego area, including Streetcar Merchants in the North Park neighborhood.
He conspired with others to underreport over $1.7 million in gross receipts on Rockstar Dough’s 2020 corporate tax return and on COVID-19 relief applications. Suel’s businesses fraudulently received $1,773,245 million in COVID-19 relief funds from the Paycheck Protection Program and the Restaurant Revitalization Fund, both created to assist businesses suffering from the economic impact of the pandemic.
Suel and a co-conspirator misused these COVID-19 relief funds by making substantial cash withdrawals, purchasing a home in Arkansas, and keeping more than $2.4 million in cash in his bedroom.
In addition to the fraudulent relief claims, Suel failed to file timely tax returns for 2018 and 2019, as legally required. He also did not file personal tax returns from 2020 through 2022, which would have reported the income he received from his businesses, including the millions of dollars in cash he withdrew.
In 2023, Suel filed false original and amended tax returns for multiple years, including personal returns for 2016 and 2017, which falsely claimed depreciable assets and business losses.
As a result of these actions, Suel caused a tax loss to the IRS totaling $1,292,976.
Suel was convicted of wire fraud, conspiracy to commit wire fraud, tax evasion, conspiracy to defraud the United States, filing false tax returns, and failing to file tax returns. However, he was acquitted of money laundering charges. After his conviction, Suel agreed to forfeit $1,466,918 in U.S. currency.
Suel’s sentencing is scheduled for December 13, 2024. He faces a maximum penalty of 30 years in prison for each count of wire fraud and conspiracy to commit wire fraud, five years in prison for each count of tax evasion and conspiracy to defraud the United States, three years for each count of filing false tax returns, and one year for each count of failing to file tax returns. A federal district court judge will determine Suel’s sentence after considering the U.S. Sentencing Guidelines and other relevant factors.
The case was investigated by IRS Criminal Investigation. The prosecution is being handled by Trial Attorney Julia Rugg of the Justice Department’s Tax Division and Assistant U.S. Attorney Christopher Beeler for the Southern District of California.
This article, “California Restaurant Owner Convicted of Tax and COVID-19 Fraud Schemes” was first published on Small Business Trends