Tax Fraud Blotter: Restaurateur Pleads Guilty to Defrauding Millions

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A Denver restaurateur who owned multiple eateries in Colorado and Illinois pleaded guilty to defrauding the federal government out of millions of dollars in COVID-19 relief loans and failing to pay hundreds of thousands in taxes. Jared Leonard, 45, moved to Mexico in 2025 as his restaurant empire began to crumble, with employees accusing the Leonards of pocketing payroll taxes. Leonard was brought back to the U.S. for prosecution, facing charges of bank fraud, wire fraud, and tax evasion.

Why it matters

This case highlights the ongoing problem of COVID-19 relief fund fraud, with criminals exploiting government aid programs for personal gain. It also raises concerns about the oversight and enforcement mechanisms around small business loans and payroll tax compliance, especially in the restaurant industry which was hit hard by the pandemic.

The details

Between May and September 2020, Leonard applied for and received at least nine COVID-19 relief loans totaling a minimum of $149,900 each. He then quickly transferred the funds from his business accounts to his personal bank account. In June 2020, he used $1.2 million in cash to purchase a luxurious home in Colorado. Leonard's scheme unraveled in early 2025 when all four of his Denver restaurants abruptly shut down, with employees accusing the Leonards of withholding their payroll taxes.

• In February 2025, all four of Jared Leonard's Denver restaurants closed down.
• Between May and September 2020, Leonard applied for and received at least nine COVID-19 relief loans.
• In June 2020, Leonard used $1.2 million in cash to purchase a home in Evergreen, Colorado.

What’s next

Jared Leonard will be sentenced in the coming months and faces 37 to 46 months in prison.