A San Diego restaurant owner has been convicted of taking 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 last year along with business partner Ravae Smith.
According to the U.S. Attorney’s Office, they fraudulently received $1.77 million in 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 Suel underreported more than $1.7 million in gross receipts in order to qualify for the pandemic-related loans and grant funds.
A prosecution trial brief states 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.
The jury returned the verdict, on wire fraud, conspiracy and tax crimes, on Tuesday. Jurors acquitted him of money laundering charges.
Smith died earlier this year, according to court documents, while Suel went to trial this month. He’s slated for sentencing in Dec. 13.
