A San Diego restauranteur who was convicted of taking $1.77 million in pandemic relief funds was sentenced Friday to three years and six months in prison.
Leronce Suel, 47, the majority owner of companies that operated North Park’s Streetcar Merchants and other eateries, was indicted along with a business partner.
According to the U.S. Attorney’s Office, they fraudulently received Paycheck Protection Program loans and Restaurant Revitalization Fund grants.
Federal agents found more than $2.4 million in cash hidden in Suel’s bedroom, according to prosecutors, who said he underreported more than $1.7 million in gross receipts in order to qualify for the loans and grants.
Instead of using the COVID-19 relief program funds on eligible expenses like rent and payroll, Suel and co-conspirator Ravae Smith made cash withdrawals from their business bank accounts and purchased a home in Arkansas.
A prosecution trial brief states that Suel also didn’t file federal tax returns from 2014 to 2022, “despite making significant income from these restaurants.” In 2023, he filed original and amended tax returns for those years “that included false depreciable assets and business losses,” according to the U.S. Attorney’s Office.
Suel went to trial last year and was convicted of wire fraud, conspiracy and tax-related charges. Some counts carried a maximum penalty of 30 years in prison.
Along with the prison time, he was ordered to pay the $1,77 million in restitution to the U.S. Small Business Administration and forfeit almost $1.5 million of the cash seized from his home.
Further restitution to the IRS could be determined at a later date.
Smith, also charged in the case, died in late 2023, according to court documents.
City News Service contributed to this report.
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