San Diego Restaurant Owner Charged with Tax Fraud and COVID-Relief Fraud
Summary
A press release datelined San Diego reports that restaurant owner Leronce Suel, 47, was indicted by a federal grand jury in Case Number 23-CR-965-RBM on charges including wire fraud conspiracy, wire fraud, money laundering conspiracy, conspiracy to defraud the United States, tax evasion, filing a false tax return and failure to file a tax return. The indictment alleges that Suel, majority owner of Rockstar Dough LLC and Chicken Feed LLC, conspired with a business partner to underreport $1.7 million in gross receipts on Rockstar Dough's 2020 corporate return, used that return from March 2020 to June 2022 to qualify for Paycheck Protection Program and Restaurant Revitalization Funding loans, and concealed more than $2.4 million in cash at their residence. The release notes that an indictment is merely an allegation.
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SAN DIEGO – San Diego restaurant owner Leronce Suel was indicted by a federal grand jury today on charges that he provided bogus information in applications for COVID relief programs and failed to report more than $1.7 million in revenue to the IRS. According to the indictment, Leronce Suel was the majority owner of Rockstar Dough LLC and Chicken Feed LLC, both of which operated a series of restaurants in the San Diego area. He allegedly conspired with his business partner to underreport the $1.7 million in gross receipts on Rockstar Dough LLC’s 2020 corporate tax return (Form 1120-S) filed with the IRS. The indictment alleges that from March 2020 to June 2022, Suel and his business partner conspired to use the false corporate tax return for tax year 2020 to qualify for the COVID-related Paycheck Protection Program and Restaurant Revitalization Funding loans. Suel also made materially false certifications on loan applications regarding the use of the money. The indictment charges that Suel and his business partner made substantial cash withdrawals from their business bank accounts to launder the fraudulently obtained funds. As part of the conspiracy, Suel and his business partner allegedly concealed more than $2.4 million in cash at their residence. The indictment further alleges that Suel also failed to report personal income he received from his businesses, including millions of dollars in cash and personal expenses paid by his businesses. Suel allegedly failed to timely file his individual tax returns for tax year 2018 and 2019 and evaded his individual income taxes for tax year 2020. The indictment alleges that in 2023, Suel filed original and amended tax returns that included false depreciable assets and business losses. Assistant U.S. Attorney Christopher Beeler of the Southern District of California and Trial Attorney Julia Rugg of the Justice Department’s Tax Division are prosecuting the case. *An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. DEFENDANT Case Number 23-CR-965-RBM Leronce Suel Age: 47 San Diego, CA SUMMARY OF CHARGES Wire Fraud Conspiracy – Title 18, U.S.C., Section 1349 Maximum penalty: Thirty years in prison; $1 million fine; forfeiture and restitution Wire Fraud – Title 18, U.S.C., Section 1343 Maximum penalty: Thirty years in prison; $1 million fine; forfeiture and restitution Money Laundering Conspiracy – Title 18, U.S.C., Section 1956(h) Maximum penalty: Twenty years in prison; $500,000 fine, and forfeiture Conspiracy to Defraud the United States – 18 U.S.C., Section 371 Maximum Penalty: Five years in prison and $250,000 fine Tax Evasion – 26 U.S.C., Section 7201 Maximum penalty: Five years in prison; $100,000 fine; and restitution Filing a False Tax Return – 26 U.S.C., Section 7206(1) Maximum penalty: Three years in prison; $100,000 fine; and restitution Failure to File a Tax Return – 26 U.S.C., Section 7203 Maximum Penalty: Five years in prison; $25,000 fine; and restitution AGENCY Internal Revenue Service – Criminal Investigation
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