(Image Credit: IMAGN) A prisoner looks out of his cell at the Franklin County Jail in downtown Columbus on Friday, February 17, 2017
San Diego, California – A San Diego restaurant owner who misused over $1.7 million in COVID-19 relief funds to buy a home in Arkansas and hoard millions in cash was sentenced Friday to three years and six months in federal prison.
Leronce Suel, 47, was convicted of multiple federal charges after fraudulently securing $1,773,245 in pandemic assistance through the Paycheck Protection Program (PPP) and Restaurant Revitalization Fund (RRF), prosecutors said. Suel was the majority owner of Rockstar Dough LLC and Chicken Feed LLC, which operated restaurants in the San Diego area, including North Park’s Streetcar Merchants.
According to court documents, Suel and his late business partner, Ravae Smith, falsified financial information on COVID-19 relief applications by underreporting more than $1.7 million in gross receipts. Prosecutors also said Suel did not file federal tax returns for several years despite earning substantial income from his businesses. When he eventually filed returns in 2023, they contained false business losses and fictitious depreciable assets.
Suel used the fraudulently obtained relief funds for personal gain, including purchasing a home in Arkansas and withdrawing large sums of cash. During a search of his home, federal agents discovered more than $2.4 million in cash hidden in his bedroom.
In September 2024, a federal jury convicted Suel of wire fraud, conspiracy to commit wire fraud, tax evasion, conspiracy to defraud the United States, filing false tax returns, and failing to file tax returns. His co-defendant, Smith, passed away in late 2023 before the case concluded.
In addition to the 42-month prison sentence handed down by U.S. District Court Judge Ruth Bermudez Montenegro, Suel was ordered to pay $1,773,245 in restitution to the U.S. Small Business Administration. He also agreed to forfeit $1,466,918 in cash seized from his home. Further restitution to the Internal Revenue Service will be determined at a hearing on June 6.
The case was investigated by IRS Criminal Investigation and prosecuted by Trial Attorney Julia Rugg of the Justice Department’s Tax Division and Assistant U.S. Attorney Christopher Beeler of the Southern District of California.
Acting Deputy Assistant Attorney General Karen E. Kelly and U.S. Attorney Adam Gordon announced the sentencing, emphasizing the government’s commitment to prosecuting COVID-19 relief fraud.
