SAN DIEGO (FOX 5/KUSI) — Leronce Suel, a 47-year-old San Diego restaurant owner, was sentenced Friday to 42 months in federal prison for fraudulently obtaining over $1.7 million in COVID-19 relief funds and evading taxes, according to the U.S. Attorney’s Office.
Suel the majority owner of Rockstar Dough LLC and Chicken Feed LLC—operators of restaurants, including Streetcar Merchants in North Park—was convicted in September 2024 on charges of wire fraud, conspiracy and tax crimes. His sentencing also included a restitution order of $1,773,245 to the U.S. Small Business Administration, along with criminal forfeiture of $1,466,918 seized from his home in 2022.
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Federal prosecutors say Suel conspired with a business partner to underreport over $1.7 million in income on tax filings and COVID-relief loan applications, defrauding programs like the Paycheck Protection Program (PPP) and the Restaurant Revitalization Fund (RRF). Rather than using the funds for rent, payroll or other eligible expenses, prosecutors said the money was funneled in large cash withdrawals from business bank accounts and the purchase of a home in Arkansas.
In June 2022, agents with IRS-Criminal Investigation executed a search warrant at Suel’s residence and recovered more than $2.4 million in cash.
“This defendant took resources meant to support those most vulnerable during a time of crisis and used them for his own enrichment,” said U.S. Attorney Adam Gordon. “By misappropriating over $1.7 million in COVID relief funds, he robbed individuals and families of the assistance they desperately needed.”
The trial revealed a wide-ranging scheme, including doctored tax returns, false business expenses and unreported income. In one instance, Suel claimed rent deductions for a restaurant he wasn’t actually paying rent on. He also provided his accountant with false information to support a web of fraudulent filings dating 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,” said IRS-Criminal Investigation Special Agent in Charge Tyler Hatcher. “Now, Mr. Suel will feel the repercussions of his disregard for his fellow taxpayers.”
The case underscores ongoing federal efforts to hold accountable those who exploited pandemic relief programs intended to help small businesses weather the economic fallout of COVID-19.
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