San Diego Restaurant Owner Charged with Tax and COVID-Relief Fraud Schemes

A federal grand jury in San Diego returned a superseding indictment on Feb. 2, charging a California man with wire fraud, conspiracy to commit wire fraud, tax evasion, filing false tax returns, conspiracy to defraud the United States, conspiracy to commit money laundering and failing to file tax returns.  

According to the indictment, Leronce Suel was the majority owner of Rockstar Dough LLC and Chicken Feed LLC, both of which operated restaurants in the San Diego area. He allegedly conspired with his business partner to underreport over $1.7 million in gross receipts on Rockstar Dough LLC’s 2020 corporate tax return filed with the IRS. The indictment alleges that from March 2020 to June 2022, Suel and the business partner then used this false corporate tax return to qualify for the COVID-19-related Paycheck Protection Program and Restaurant Revitalization Funding loans. Suel also allegedly falsely certified on loan forgiveness applications that he spent the money his restaurants received from these programs only for payroll. The indictment charges that Suel and his co-conspirator made substantial cash withdrawals from their business bank accounts to launder the fraudulently obtained funds. As part of the conspiracy, Suel and his co-conspirator allegedly concealed more than $2.4 million in cash at their residence.

The indictment further charges that Suel failed to report income he received from his businesses, including millions of dollars in cash and personal expenses paid for by the businesses, such as the rent for his home. In 2023, Suel also allegedly filed original and amended tax returns for prior tax years that included false depreciable assets and business losses.

If convicted, Suel faces a maximum penalty of 30 years in prison for each count of wire fraud and conspiracy to commit wire fraud, 10 years in prison for each count of conspiracy to commit money laundering, five years in prison for tax evasion and conspiracy to defraud the United States, three years in prison for each count of filing false tax returns and one year in prison for each count of failing to file tax returns. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Tara K. McGrath for the Southern District of California made the announcement.

IRS Criminal Investigation is investigating the case.

Trial Attorney Julia Rugg of the Justice Department’s Tax Division and Assistant U.S. Attorney Christopher Beeler for the Southern District of California are prosecuting the case.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.