Former Streetcar Merchants owner faces prison time in $1.77 million pandemic fraud case

Federal courthouse in downtown San Diego File photo by Chris Stone Times of San Diego A San Diego restauranteur who was convicted of taking million in pandemic relief funds was sentenced Friday to three years and six months in prison Leronce Suel 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 Project loans and Restaurant Revitalization Fund grants Federal agents revealed more than million in cash hidden in Suel s bedroom according to prosecutors who reported he underreported more than million in gross receipts in order to qualify for the loans and grants Instead of using the COVID- relief project 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 to despite making substantial income from these restaurants In 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 Specific counts carried a maximum penalty of years in prison Along with the prison time he was ordered to pay the million in restitution to the U S Small Business Administration and forfeit almost 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 occurrence died in late according to court documents City News Amenity contributed to this assessment