A San Diego eatery entrepreneur was slapped with charges of concocting a scheme to swindle COVID relief funds and dodge taxes, the feds disclosed. Leronce Suel, 47, purportedly fueled his fraudulent fire by feeding the IRS lies about his business income and milking federal loan programs meant for pandemic-stricken businesses, according to an indictment handed down by a federal grand jury, per the Justice Department.
Federal accusations detailed by prosecutors painted Suel as the majority stakeholder of Rockstar Dough LLC and Chicken Feed LLC, both pillars in a network of local San Diego restaurants. Found in the indictment, concocting a plan to report less than what was raked in, Suel and a business ally are accused of hiding north of $1.7 million in gross receipts on Rockstar Dough's corporate taxes for the year 2020.
The duo didn't stop at just that. The indictment charges them using their creatively crafted corporate tax return to qualify for loans under the Paycheck Protection Program and the Restaurant Revitalization Funding, programs launched to cushion businesses against the COVID-19 financial freefall. False certifications on loan applications were part of the mix, with allegations stating that Suel misrepresented how the cash would be spent.
Prosecutors further claim that these schemes were bankrolled by withdrawals amounting to a staggering cash collection, exceeding $2.4 million, hidden away at the residence shared by Suel and his business colleague. This hoard, they say, was comprised predominantly of the ill-gotten gains, according to Justice Department statements.
But the allegations extend beyond the heart of his businesses. Suel is accused of failing to report his income, neglecting to file his taxes timely for 2018 and 2019, and evading his income taxes for 2020. In a twist, the indictment also includes claims that, in 2023, Suel filed original and amended tax returns that falsely listed depreciable assets and claimed business losses.
Assistant U.S. Attorney Christopher Beeler and Justice Department Tax Division's Trial Attorney Julia Rugg spearhead the case's prosecution. If convicted, Suel faces a hefty sentence. The laundry list of charges includes wire fraud conspiracy with a maximum sentence of thirty years in prison and a $1 million fine, money laundering conspiracy, which could land him twenty years, and tax evasion, among others.
