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San Diego Restaurant Owner Sentenced for COVID-19 Relief Fraud
SAN DIEGO — Leronce Suel, age 47, has been sentenced to 42 months in federal prison after being found guilty of fraudulently acquiring over $1.7 million in COVID-19 relief funds while evading taxes. This decision was announced by the U.S. Attorney’s Office on Friday.
As the primary owner of Rockstar Dough LLC and Chicken Feed LLC, Suel operated several restaurants, including the popular Streetcar Merchants located in North Park. He was convicted in September 2024 on multiple charges, including wire fraud, conspiracy, and tax-related offenses. The court also mandated a restitution payment of $1,773,245 to the U.S. Small Business Administration and ordered the forfeiture of $1,466,918, which had been seized from his residence in 2022.
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According to federal prosecutors, Suel collaborated with a business associate to understate his income exceeding $1.7 million in tax submissions and application for COVID-19 relief loans. He misused funds from programs such as the Paycheck Protection Program (PPP) and the Restaurant Revitalization Fund (RRF). Instead of directing the relief money towards legitimate expenses like rent and payroll, Suel allegedly withdrew large sums of cash from business accounts and used the funds to purchase property in Arkansas.
In June 2022, IRS-Criminal Investigation executed a search warrant at Suel’s home, uncovering over $2.4 million in cash during the operation.
U.S. Attorney Adam Gordon remarked, “This defendant took resources meant to support those most vulnerable during a time of crisis and used them for his own enrichment. By misappropriating over $1.7 million in COVID relief funds, he robbed individuals and families of the assistance they desperately needed.”
The trial unveiled a complex scheme involving falsified tax returns, fabricated business expenses, and untaxed income. Notably, Suel attempted to claim rental deductions for a restaurant where he was not paying rent. He also misled his accountant to sustain a history of fraudulent filings extending back more than a decade.
“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,” stated Tyler Hatcher, Special Agent in Charge of IRS-Criminal Investigation. “Now, Mr. Suel will face the consequences of his blatant disregard for his fellow taxpayers.”
This case highlights the ongoing federal efforts aimed at holding accountable individuals who have exploited relief programs rather than providing aid to small businesses affected by the economic fallout of the COVID-19 pandemic.
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