SAN DIEGO (FOX 5/KUSI) — Leronce Suel, a 47-year-old San Diego restaurant proprietor, was sentenced Friday to 42 months in federal jail for fraudulently acquiring over $1.7 million in COVID-19 reduction funds and evading taxes, in accordance with the U.S. Lawyer’s Workplace.
Suel the bulk proprietor of Rockstar Dough LLC and Rooster Feed LLC—operators of eating places, together with Streetcar Retailers in North Park—was convicted in September 2024 on fees of wire fraud, conspiracy and tax crimes. His sentencing additionally included a restitution order of $1,773,245 to the U.S. Small Enterprise Administration, together with prison forfeiture of $1,466,918 seized from his house in 2022.
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Federal prosecutors say Suel conspired with a enterprise associate to underreport over $1.7 million in revenue on tax filings and COVID-relief mortgage functions, defrauding applications just like the Paycheck Safety Program (PPP) and the Restaurant Revitalization Fund (RRF). Somewhat than utilizing the funds for lease, payroll or different eligible bills, prosecutors mentioned the cash was funneled in giant money withdrawals from enterprise financial institution accounts and the acquisition of a house in Arkansas.
In June 2022, brokers with IRS-Prison Investigation executed a search warrant at Suel’s residence and recovered greater than $2.4 million in money.
“This defendant took sources meant to assist these most susceptible throughout a time of disaster and used them for his personal enrichment,” mentioned U.S. Lawyer Adam Gordon. “By misappropriating over $1.7 million in COVID reduction funds, he robbed people and households of the help they desperately wanted.”
The trial revealed a wide-ranging scheme, together with doctored tax returns, false enterprise bills and unreported revenue. In a single occasion, Suel claimed lease deductions for a restaurant he wasn’t really paying lease on. He additionally supplied his accountant with false info to assist an online of fraudulent filings relationship again greater than a decade.
“Mr. Suel’s 10-plus years of tax evasion and fraudulent claims for COVID reduction grants and loans caught as much as him when a jury of his friends discovered him responsible,” mentioned IRS-Prison Investigation Particular Agent in Cost Tyler Hatcher. “Now, Mr. Suel will really feel the repercussions of his disregard for his fellow taxpayers.”
The case underscores ongoing federal efforts to carry accountable those that exploited pandemic reduction applications meant to assist small companies climate the financial fallout of COVID-19.
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