The owner of several well-known San Diego County restaurants has been convicted of wire fraud, conspiracy, and tax fraud.
In May 2023, a federal grand jury in San Diego indicted Leronce Suel and his partner RaVae Smith on charges including conspiracy to commit wire fraud, wire fraud, and money laundering. Suel and Smith, operating under their companies Rockstar Dough LLC and Chicken Feed LLC, managed multiple restaurants in the area, including Streetcar Merchants of Fried Chicken in North Park, Suckerfree Southern Plates & Bar in the Gaslamp, and ShotCaller Street Soul Food in Lincoln Park, all of which has since closed.
According to the indictment, between March 2020 and June 2022, Suel and Smith conspired to underreport over $1.7 million in gross receipts on Rockstar Dough LLC’s 2020 tax return to the IRS. This underreporting allowed them to qualify for COVID-related Paycheck Protection Program (PPP) and Restaurant Revitalization Fund loans. They also allegedly made false statements on loan applications about the intended use of the funds and withdrew substantial amounts of cash from business accounts to launder the money. Prosecutors revealed that over $2.4 million in cash was hidden in shoe boxes at their residence.
Prosecutors revealed that Suel and Smith used food delivery services like Uber Eats, DoorDash, and Postmates to boost their earnings during the pandemic, while simultaneously lying about their financial situation on federal loan applications. The government found text messages between the two partners discussing how to manipulate their financial records.
Suel had also failed to file tax returns between 2013 and 2022. After investigators found the cash, Suel hired an accountant to prepare amended returns going back to 2014, but continued to provide false information.
Following a trial, the jury found Suel guilty of 11 counts of wire fraud, conspiracy to defraud the federal government, tax evasion, filing a false return and failing to file returns, according to the verdict Tuesday. Suel was found not guilty on two counts of money laundering. Suel was convicted of charges related to falsifying COVID relief applications and failing to report more than $1.7 million to the IRS. Suel has also been ordered to forfeit nearly $1.5 million to the federal government.
"Shirking taxes, lying to the IRS, and stealing COVID relief funds—these are not victimless crimes," said U.S. Attorney Tara McGrath. "This jury saw through greed and deceit to protect federal programs meant to aid those in need."
Smith, who was also indicted, died in December 2023 in Fayetteville, Arkansas, where she and Suel had purchased a roughly $975,000 home. She was 45 years old at the time of her death.
Suel’s attorney, L. Marcel Stewart, argued that the government speculated about the source of the funds used to purchase the Arkansas home and that Suel had more than $658,000 in cash before receiving the relief money. However, these claims did not sway the jury, and Suel now awaits sentencing, where he faces significant prison time. Suel is scheduled for sentencing on December 13, 2024.
The case is U.S. v. Suel, case number 23-CR-0965-RBM, in the U.S. District Court for the Southern District of California.
Suel had also failed to file tax returns between 2013 and 2022. After investigators found the cash, Suel hired an accountant to prepare amended returns going back to 2014, but continued to provide false information.
Following a trial, the jury found Suel guilty of 11 counts of wire fraud, conspiracy to defraud the federal government, tax evasion, filing a false return and failing to file returns, according to the verdict Tuesday. Suel was found not guilty on two counts of money laundering. Suel was convicted of charges related to falsifying COVID relief applications and failing to report more than $1.7 million to the IRS. Suel has also been ordered to forfeit nearly $1.5 million to the federal government.
"Shirking taxes, lying to the IRS, and stealing COVID relief funds—these are not victimless crimes," said U.S. Attorney Tara McGrath. "This jury saw through greed and deceit to protect federal programs meant to aid those in need."
Smith, who was also indicted, died in December 2023 in Fayetteville, Arkansas, where she and Suel had purchased a roughly $975,000 home. She was 45 years old at the time of her death.
Suel’s attorney, L. Marcel Stewart, argued that the government speculated about the source of the funds used to purchase the Arkansas home and that Suel had more than $658,000 in cash before receiving the relief money. However, these claims did not sway the jury, and Suel now awaits sentencing, where he faces significant prison time. Suel is scheduled for sentencing on December 13, 2024.
The case is U.S. v. Suel, case number 23-CR-0965-RBM, in the U.S. District Court for the Southern District of California.