Restaurateur Leronce Suel was sentenced to 42 months in prison in San Diego for submitting over $1.7 million in fraudulent COVID-relief applications and not reporting the income to the IRS. Suel, the owner of Rockstar Dough LLC and Chicken Feed LLC, was convicted of wire fraud, conspiracy, and tax crimes by a jury in September 2024.
He was ordered to pay $1,773,245 in restitution to the U.S. Small Business Administration and criminal forfeiture of $1,466,918 from the $2.4 million seized from his home in June 2022. A decision on restitution to the IRS will follow in a hearing set for June 6, 2025.
U.S. Attorney Adam Gordon commented on the case, stating, "This defendant took resources meant to support those most vulnerable during a time of crisis and used them for his own enrichment." He highlighted that Suel misappropriated over $1.7 million in COVID relief funds, thereby depriving individuals and families of essential assistance.
Evidence presented at trial showed Suel conspired with a business partner to underreport over $1.7 million in gross receipts on the 2020 corporate tax return and COVID relief applications for Rockstar Dough LLC. Suel's businesses falsely certified eligibility and usage of funds from the Paycheck Protection Program and Restaurant Revitalization Fund, receiving around $1,773,245 in loans and grants.
Instead of using these funds for eligible expenses, Suel and his co-conspirator made significant cash withdrawals and purchased a home in Arkansas. They hid more than $2.4 million in cash, which was seized by IRS-Criminal Investigation agents in June 2022. During the trial, it was revealed that Suel tried to cover up his crimes through false information provided to an accountant, leading to inaccurate tax returns.
Special Agent in Charge Tyler Hatcher from the IRS Criminal Investigation mentioned, "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." He emphasized the importance of fulfilling tax responsibilities for the system to function correctly.
The case against Suel is being prosecuted by Assistant U.S. Attorney Christopher Beeler and Trial Attorney Julia Rugg from the U.S. Department of Justice Tax Division.
