A former San Diego restaurant owner has been convicted of a $1.7 million COVID relief-fund fraud, reports NBC 7’s Jackie Crea.
A former San Diego restaurant owner has been convicted of a $1.7 million COVID relief-fund fraud.
Streetcar Merchants, a Southern-style establishment in North Park on 30th Street closed down some time ago, but, prosecutors said Leronce Suel, 46, the majority owner, and his business partner Ravae Smith underreported more than $1.7 million in gross receipts on Rockstar Dough LLC’s 2020 corporate tax return and COVID relief applications.
Prosecutors said Suel had been evading personal and business taxes for at least a decade.
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Prosecutors say Suel and Smith used some of the stolen money to buy a house in Arkansas and other personal expenses. Court documents also detailed how Suel hid $2.4 million in cash in shoeboxes in his bedroom.
A federal jury convicted Suel of wire fraud, conspiracy and tax crimes, as well as falsifying information on COVID relief program applications and failing to report $1.7 million in revenue to the IRS.
Streetcar Merchants still has a Yelp page up with 1,500 reviews, plenty of photos and a 3.4 star rating.
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After his conviction, Suel agreed to forfeit roughly $1.4 million of the pandemic relief money he fraudulently acquired. He is scheduled to be sentenced in December and faces up to 74 years in prison and more than $2 million in fines.
While Smith was also indicted in connection to the case, she was found dead in Fayetteville, Arkansas, on Dec. 28, 2023.
