San Diego restaurateur Leronce Suel has been sentenced to 42 months in prison for a series of fraudulent activities, including evasion of tax responsibilities and misappropriation of COVID-19 relief funds. As reported by the U.S. Attorney's Office, Suel, 47, majority owner of Rockstar Dough LLC and Chicken Feed LLC, engaged in underreporting over $1.7 million in gross receipts on the 2020 corporate tax return and COVID-19 relief applications of Rockstar Dough.
Investigations revealed that Suel conspired to defraud the government's relief programs established to support Americans during the pandemic, including the Paycheck Protection Program (PPP) and the Restaurant Revitalization Fund (RRF). According to evidence from his trial, Suel and a business partner misappropriated COVID-19 relief program funds for personal use, having withdrawn substantial amounts of cash from business bank accounts and purchased a home in Arkansas despite the funds being destined for legitimate business expenses. The Justice Department has also indicated that more than $2.4 million was discovered in Suel's bedroom.
Falling in line with his fraudulent behavior, Suel neglected to file timely tax returns for 2018 and 2019, and when he filed from 2020 through 2023, he failed to report the cash income withdrawn from his businesses. Further, in 2023, he was found to have filed false original and amended tax returns for multiple years, involving fictitious business losses and depreciable assets. As per the Justice Department, Acting Deputy Assistant Attorney General Karen E. Kelly described Suel's actions as a scheme that directed resources away from those critically in need during a national crisis.
Last September, a jury convicted Suel on counts of wire fraud, conspiracy to commit wire fraud, tax evasion, and additional related charges. Besides serving his 42-month sentence, Suel has been ordered to make restitution payments to the Small Business Administration totaling approximately $1.7 million and to forfeit over $1.4 million in currency. On June 6th, a hearing will further determine restitution owed to the IRS. Acknowledging the impact of the criminal actions, Special Agent in Charge Tyler Hatcher from IRS Criminal Investigation, as cited by the U.S. Attorney's Office, stated that the tax system depends on everyone paying their fair share, and those evading taxes will face the law's consequences.
