Former Denver restaurateur indicted for fraud, accused of misusing PPP loans

A former Denver restaurateur was arrested and indicted last week on charges of fraud with federal prosecutors accusing him of receiving more than million in pandemic relief loans under false pretenses and for his personal benefit Jared Leonard whose restaurant group included the Michelin-recommended AJ s Pit Bar-B-Q made his initial appearance in the U S District Court of Colorado in Denver last week On Monday a magistrate judge ordered Leonard be transferred to the northern district of Illinois in Chicago where he lived previously and where charges were initially filed last month He remains in federal custody according to court documents Leonard s restaurant operations in Colorado officially ended in February when the staff of AJ s Pit Bar-B-Q quit en masse and accused him of failing to overview taxes or healthcare contributions He had already shut down two other concepts Grabowski s Pizzeria and Campfire earlier that month At the time he described The Denver Post he had moved to Mexico to run his remaining restaurants in the Punta Mita resort group A spokesperson for the U S District Court of Colorado and Jennifer Beck the citizens defender who represented Leonard in Denver declined to comment on the development The district court spokesperson would not confirm where Leonard was arrested According to federal charges filed in Illinois last month Leonard had applied for more than million in loans introduced in the Coronavirus Aid Relief and Economic Measure Act The bill was enacted as a lifeline for businesses reeling from the effects of the COVID- pandemic in According to the charges Leonard lied about the number of employees and monthly payroll at restaurants in Denver and Chicago including Grabowski s Pizzeria and AJ s Pit Bar-B-Q in his applications for the Paycheck Protection Activity and Economic Injury Catastrophe Loan funds One restaurant BBQ Supply Co in Chicago had closed in prosecutors say Leonard used the funds for personal purchases despite claiming they would go toward business purposes according to federal prosecutors The charges show he bought a million house in Colorado in with the money and paid in cash Federal prosecutors are charging Leonard with seven counts including bank and wire fraud If convicted he could be forced to pay the federal ruling body million and forfeit property he acquired with the relief funds according to the charges Related Articles Carioca Cafe manager hopes to reopen legendary Denver dive bar after wall collapse A new generation of Indigenous chefs is growing and cooking foods traditional to their ancestors Denver restaurant debuts gourmet meal kits for camping Cuba Cuba co-founder returns with soulful take on Cuban specialties Four Denver restaurant dishes we loved in June including poke at Aloha Cones The Colorado Department of Revenue seized and auctioned off AJ s Pit Bar-B-Q after the restaurant s employees quit The restaurant is under new ownership and a new name Riot BBQ Co Patrick Klaiber the pitmaster who helped win AJ s Pit Bar-B-Q a Bib Gourmand classification in the state s original Michelin Guide in is behind the new venture alongside chef Manny Barella I m happy it ultimately all caught up to him Klaiber reported Monday Other entities of Leonard s implicated in the criminal matter are Hamburger Stan in Chicago and an umbrella group called SS Collective Subscribe to our new food newsletter Stuffed to get Denver food and drink news sent straight to your inbox