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Restaurateur Admits Stealing Millions in COVID Funds
5 Apr
Summary
- Restaurateur Jared Leonard pleaded guilty to defrauding the government.
- He submitted fraudulent COVID relief loan applications totaling $2.3 million.
- Leonard faces 37 to 46 months in prison and must repay $2.7 million.
Jared Leonard, 45, a restaurateur with establishments in Colorado and Illinois, has pleaded guilty to defrauding the federal government of over $2.3 million through fraudulent COVID relief loan applications. He admitted to inflating employee numbers and payroll figures when applying for Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP) funds.
Leonard's scheme included double-dipping on loans and using company bank accounts for businesses that had already closed. The funds were quickly transferred to his personal accounts, with over $1.2 million used for a cash purchase of a Colorado home. He also owes $434,000 in back taxes.
In addition to the fraud charges, Leonard pleaded guilty to tax evasion. Prosecutors dropped other charges as part of his plea agreement. He faces a sentencing hearing where he could receive 37 to 46 months in prison and is required to repay the government $2.7 million for the stolen funds and owed taxes.
