Restaurateur Sentenced to Two and a Half Years in Federal Prison for $2.8 Million Covid-Relief and Tax Frauds

CHICAGO – A restaurateur who operated several eateries in Illinois and Colorado has been sentenced to two and a half years in federal prison for submitting fraudulent Covid-relief loan applications and failing to pay tax withholdings from his employees. Under the leadership of United States Attorney Andrew S. Boutros and consistent with the Administration’s priorities to identify, investigate, and prosecute criminal fraud in the federal government entitlement and benefit programs, the U.S. Attorney’s Office for the Northern District of Illinois has been taking a fresh look at Covid-19 fraud. In 2020 and 2021, JARED LEONARD schemed to fraudulently obtain more than $2.3 million in small business loans and grants under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). Leonard submitted at least ten fraudulent applications for Paycheck Protection Program (“PPP”) and Economic Injury Disaster Loan (“EIDL”) loans and grants purportedly on behalf of his restaurant businesses. The applications contained numerous false statements and misrepresentations regarding the businesses’ operations, including the number of employees, gross revenues, and payroll expenses. Leonard used the funds to purchase, among other things, vehicles, international travel, and a luxurious personal residence on more than seven acres in Evergreen, Colo. In the 15 months prior to the Covid-19 pandemic, Leonard failed to pay to the IRS federal income taxes, Social Security taxes, and Medicare taxes that he had withheld on behalf of his employees in amounts totaling more than $430,000. Leonard, 45, of Littleton, Colo., pleaded guilty earlier this year to federal wire fraud and tax charges. On Aug. 13, 2026, U.S. District Judge Edmond E. Chang sentenced Leonard to 30 months in federal prison and ordered him to pay approximately $2.8 million in restitution to the IRS and U.S. Small Business Administration. U.S. Attorney Boutros announced Leonard’s sentence along with Marta Grijalva, Acting Special Agent in Charge of IRS Criminal Investigation in Chicago, and Vincent R. Zehme, Special Agent-in-Charge of the Chicago Region of the Federal Deposit Insurance Corp. Office of Inspector General. Valuable assistance was provided by the Denver Field Office of the FBI. “The crimes defendant committed were undertaken for his personal benefit, not to aid his employees,” Assistant U.S. Attorney Brian Hayes argued in the government’s sentencing memorandum. “He purchased a luxurious home on several acres in a scenic mountain town outright with cash taken directly from the Covid-relief programs. Defendant also subsequently purchased motor vehicles and travel to high-end resorts in Mexico and other locations.” On April 7, 2026, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.