In a high-profile case that highlights the fight against financial fraud, Leronce Suel, a California restaurant owner, has been found guilty of an array of serious financial crimes, including wire fraud, conspiracy, and tax evasion. The verdict, handed down by a federal jury in San Diego, marks a significant step in addressing abuses related to COVID-19 relief programs and tax evasion.
Leronce Suel’s Fraudulent Exploitation of COVID-19 Relief Funds
Leronce Suel, the majority owner of Rockstar Dough LLC and Chicken Feed LLC, operated several restaurants in the San Diego area, including Streetcar Merchants in the North Park neighborhood. Suel’s criminal activities involved manipulating COVID-19 relief programs designed to support businesses affected by the pandemic. Specifically, Suel was found guilty of defrauding both the Paycheck Protection Program (PPP) and the Restaurant Revitalization Fund (RRF).
Court documents reveal that Suel and his associates fraudulently underreported over $1.7 million in gross receipts on Rockstar Dough’s 2020 corporate tax return and COVID-19 relief applications. By doing so, Suel’s businesses unlawfully received $1,773,245 in PPP loans and RRF grants—substantial funds intended to help businesses weather the financial impact of the pandemic.
Misuse and Misappropriation of Funds
Leronce Suel’s exploitation of COVID-19 relief funds was both extensive and severe. Suel engaged in multiple forms of financial misconduct, including making large cash withdrawals from business bank accounts, purchasing a home in Arkansas, and hoarding over $2.4 million in cash in his residence. These actions not only violated the terms of the relief programs but also represented a significant breach of public trust.
In addition to the financial misappropriation, Suel’s case highlights vulnerabilities in the oversight of relief programs. The substantial cash hoarded and the unauthorized purchases illustrate how some individuals exploited the system designed to provide essential support during a global crisis.
Tax Evasion and Filing False Returns
Beyond the COVID-19 relief fraud, Leronce Suel’s criminal activities included a deliberate effort to evade tax obligations. Suel failed to file timely tax returns for the years 2018 and 2019. Furthermore, he did not file personal tax returns from 2020 through 2022, despite receiving significant income from his businesses. This included large cash withdrawals and other forms of income that were not reported.
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In 2023, Suel compounded his criminal behavior by submitting false original and amended tax returns. These falsified returns included inflated depreciable assets and fabricated business losses for previous years. The total tax loss to the IRS resulting from Suel’s fraudulent activities amounted to $1,292,976. This figure highlights the extent of Suel’s tax evasion and the financial damage inflicted on the government.
Legal Consequences and Forfeiture
Following his conviction, Leronce Suel has agreed to forfeit $1,466,918 in U.S. currency, which represents a portion of the funds he misappropriated. The legal repercussions for Suel are severe. He could face up to 30 years in prison for each count of wire fraud and conspiracy to commit wire fraud. Additional penalties include up to five years in prison for tax evasion and conspiracy to defraud the United States, as well as up to three years for each count of filing false tax returns. Each count of failing to file tax returns carries a potential sentence of one year in prison.
Sentencing for Suel is scheduled for December 13, 2024. A federal district court judge will decide the final sentence according to the U.S. Sentencing Guidelines and other relevant statutory factors.
Investigation and Prosecution
The investigation into Leronce Suel’s financial crimes was conducted by the IRS Criminal Investigation Unit. The case was prosecuted by Trial Attorney Julia Rugg from the Justice Department’s Tax Division and Assistant U.S. Attorney Christopher Beeler of the Southern District of California. Acting Deputy Assistant Attorney General Stuart M. Goldberg and U.S. Attorney Tara K. McGrath announced the conviction.
Suel’s case serves as a significant example of the rigorous efforts by federal authorities to combat fraud and enforce financial regulations. The conviction is a clear message to individuals who may consider exploiting relief programs for personal gain.
As the sentencing date approaches, Leronce Suel’s case remains a critical reminder of the severe consequences of financial fraud and tax evasion. It highlights the importance of maintaining integrity in both business operations and personal financial practices.
