San Diego Restaurant Owner Convicted of Tax and COVID-Relief Fraud Schemes

NEWS RELEASE SUMMARY – September 18, 2024

SAN DIEGO – A federal jury convicted San Diego restaurant owner Leronce Suel of wire fraud, conspiracy, and tax crimes for providing bogus information in applications for COVID relief programs and failing to report more than $1.7 million in revenue to the IRS.

According to court documents and evidence presented at trial, Suel was the majority owner of Rockstar Dough LLC and Chicken Feed LLC, both of which operated restaurants in the San Diego area, including Streetcar Merchants in the North Park neighborhood.

The jury found that Suel conspired with his business partner to underreport over $1.7 million in gross receipts on Rockstar Dough LLC’s 2020 corporate tax return and COVID relief applications. Suel’s businesses also fraudulently received approximately $1,773,245 million in COVID-related Paycheck Protection Program loans and Restaurant Revitalization Fund grants by falsely certifying his businesses were eligible and that his businesses would use the money appropriately. Instead of using the COVID-19 relief program funds on eligible expenses, Suel and his co-conspirator made substantial cash withdrawals from their business bank accounts and purchased a home in Arkansas. As part of their conspiracy, Suel concealed more than $2.4 million in cash in his bedroom.

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

“Shirking taxes, lying to the IRS, and stealing COVID relief funds - these are not victimless crimes,” said U.S. Attorney Tara McGrath. “This jury saw through greed and deceit to ensure protection of federal programs designed to support our infrastructure and serve those in need.”

“For more than a decade, Mr. Suel evaded his tax responsibilities both as an individual and as a business owner,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office.  “Even worse than evading his tax obligations, during the COVID pandemic, Mr. Suel fraudulently obtained grants and loans intended to help businesses struggling in the wake of the pandemic and used those funds for personal gain.  Paying your fair share is central to our democracy, and IRS Criminal Investigation will continue to pursue those who evade their financial responsibilities to their fellow Americans.”

After conviction, Suel stipulated to forfeit $1,466,918 from the $2.4 million seized as proceeds traceable to his pandemic relief fraud.

Suel is scheduled to be sentenced on December 13, 2024.

This case is being prosecuted by Assistant U.S. Attorney Christopher Beeler and Trial Attorney Julia Rugg of the U.S. Department of Justice Tax Division.

DEFENDANT                                   Case Number 23-cr-00965                                      

Leronce Suel                                       Age: 46                                   San Diego, CA

SUMMARY OF CHARGES

Wire Fraud Conspiracy – Title 18, U.S.C., Section 1349

Maximum penalty: Thirty years in prison and $1 million fine

Wire Fraud – Title 18, U.S.C., Section 1343

Maximum Penalty: Thirty years in prison and $1 million fine

Conspiracy to Defraud the U.S. – Title 18, U.S.C., Section 371

Maximum Penalty: Five years in prison and $250,000 fine

Tax Evasion – Title 26, U.S.C., Section 7201

Maximum Penalty: Five years in prison and $100,000 fine

Filing False Tax Returns – Title 26, U.S.C., Section 7206(1)

Maximum Penalty: Three years in prison and $100,000 fine

Failure to File –Title 26, U.S.C., Section 7203

Maximum Penalty: One year in prison and $25,000

INVESTIGATING AGENCY

IRS Criminal Investigations