People can go to great lengths to hide their money. Leronce Suel sure did. And he started hiding his assets way before it became a trend by people wanting to jump on the COVID-19 fraud scheme bandwagon. Suel didn’t file his federal tax returns from 2014 to 2022, despite making significant income from these restaurants. Little did he know that hiding his assets from the U.S. government would help in fraudulently applying for over $2 million in COVID-19 loans. After all, there were no returns filed to contradict his applications.
Suel was the majority owner of Rockstar Dough and Chicken Feed, both of which operated restaurants in the San Diego area. In 2020, he conspired with his business partner to underreport over $1.7 million in gross receipts on Rockstar Dough LLC’s 2020 corporate tax return and COVID relief applications. As a result of his fraudulent claims, Suel’s businesses fraudulently received approximately $1,773,245 million in COVID-related Paycheck Protection Program loans and Restaurant Revitalization Fund grants.
Business revenues weren’t he only thing he lied about on his COVID-19 loan applications. Instead of using the COVID-19 relief program funds on eligible expenses, Suel and his co-conspirator made substantial cash withdrawals from their business bank accounts and purchased a home in Arkansas. A home where Suel concealed his fraudulently obtained loan proceeds. Every fraudster dream is to sleep on their money. Over$2.4 million in cash was found in Suel’s bedroom. Turning his personal space into a bank.
In 2023, he finally filed original and amended tax returns for those missed years that included false depreciable assets and business losses. Probably much to his regret. Because his assets got questioned. And on September 19, 2024, he was convicted of COVID-19 relief fraud.
Great job by the IRS Criminal Investigation Department in this case.
Today’s Fraud of The Day is based on article “San Diego restaurateur convicted of COVID relief fraud” published by The San Diego Union-Tribune on September 19, 2024.
A San Diego restaurant owner was convicted by a federal jury this week of taking more than $1.7 million in pandemic relief funds and using the money to buy a home in Arkansas rather than for his businesses.
Leronce Suel, 46, who was the majority owner of companies that operated restaurants including North Park’s Streetcar Merchants, was indicted in San Diego federal court last year along with his business partner Ravae Smith. According to the U.S. Attorney’s Office, they fraudulently received $1,773,245 in Paycheck Protection Program loans and Restaurant Revitalization Fund grants.
