Restaurateur Leronce Suel has been sentenced to 42 months in prison after being found guilty of submitting fraudulent applications for COVID relief programs and failing to report income to the IRS. Suel was convicted in September 2024 for wire fraud, conspiracy, and tax crimes. As part of his sentence, Suel is required to pay $1,773,245 in restitution to the U.S. Small Business Administration and faces criminal forfeiture of $1,466,918. The determination of restitution owed to the IRS is scheduled for June 6, 2025.
Suel, who held majority ownership in Rockstar Dough LLC and Chicken Feed LLC, operated restaurants in the San Diego area, including one named Streetcar Merchants. U.S. Attorney Adam Gordon remarked, "This defendant took resources meant to support those most vulnerable during a time of crisis and used them for his own enrichment." Gordon continued, "By misappropriating over $1.7 million in COVID relief funds, he robbed individuals and families of the assistance they desperately needed."
Evidence from Suel's trial indicated he conspired with a business partner to underreport over $1.7 million in gross receipts on tax returns and COVID relief applications. Despite certifying eligibility for COVID-related loans and grants, Suel's businesses misused funds, making substantial cash withdrawals and purchasing property in Arkansas. Investigators discovered over $2.4 million in concealed cash at Suel's residence.
Special Agent Tyler Hatcher of the IRS Criminal Investigation stated, "Mr. Suel’s 10-plus years of tax evasion and fraudulent claims for COVID relief grants and loans caught up to him when a jury of his peers found him guilty." Hatcher emphasized the importance of tax compliance and stated that the IRS-CI will "continue pursue those who evade their tax responsibilities."
Assistant U.S. Attorney Christopher Beeler and Trial Attorney Julia Rugg from the U.S. Department of Justice Tax Division are overseeing the prosecution of the case against Suel.