A San Diego restaurant owner, Leronce Suel, was convicted of scamming COVID-19 relief programs and filing false tax returns. A federal jury found Suel guilty of wire fraud, conspiracy, and various tax crimes tied to his businesses, Rockstar Dough LLC and Chicken Feed LLC, behind well-known eateries such as Streetcar Merchants in North Park, the U.S. Department of Justice reported.
During the trial, it came to light that Suel had underreported over $1.7 million in sales and received about $1,773,245 in Paycheck Protection Program loans and Restaurant Revitalization Fund grants, while in an act of misappropriation, significant cash withdrawals were made. A house in Arkansas was purchased. What's more, Suel hoarded $2.4 million cash in his bedroom, evidence showed. He also did not adhere to tax return deadlines for 2018 and 2019 and filed falsified returns for multiple years, adding up to a reported loss of $1,292,976 to the IRS.
The conviction resulted in Suel facing a substantial amount of prison time, 30 years maximum for each count of wire fraud and wire fraud conspiracy, five years for tax evasion, three for filing false tax returns, and one year for failure to file tax returns. Moreover, he complied with a forfeiture of $1,466,918 in currency. Presented evidence at trial exposed Suel's schemes to underreport income and fraudulently accrue government aid earmarked for struggling businesses during the pandemic. Sentencing is scheduled for December 13, as confirmed by Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department's Tax Division and U.S. Attorney Tara K. McGrath of the Southern District of California.
