Restaurateur Admits to Defrauding Government in Multi-Million Dollar Scheme
A restaurateur who operated eateries in Colorado and Illinois has pleaded guilty to defrauding the federal government out of millions of dollars and failing to pay hundreds of thousands in taxes. Jared Leonard, 45, once appeared as a successful businessman and community pillar, but his empire crumbled under the weight of fraudulent activities.
The Facade of Success
Leonard and his wife, Amanda, ran AJ's Pit Bar-B-Q, a Michelin-recommended establishment in Denver, Colorado. They also owned and operated six other restaurants across Denver and Chicago, managed through an umbrella company called SS Collective. However, cracks began to show in early 2025 when the couple moved to Punta De Mito, Mexico, just north of Puerto Vallarta.
On Facebook, Jared Leonard claimed he was 'living a simple life in Mexico' and announced the launch of a health and wellness retreat called Sol y Sal, posting what appeared to be an AI-generated image. His move south of the border raised suspicions, especially after all four of his Denver restaurants shut down in February 2025.
Employee Accusations and Federal Indictment
The closure of AJ's Pit Bar-B-Q was particularly dramatic, with every employee quitting on the last day of the month. They accused the Leonards of pocketing paycheck withholdings meant for the IRS and never issuing W2s. About five months later, on July 8, 2025, Jared Leonard was indicted by the federal government and arrested the next day. Amanda Leonard has not been accused of any crimes.
The Department of Justice charged Jared Leonard with forging IRS documents to inflate employee numbers and payroll amounts when applying for COVID relief loans. Initially accused of defrauding over $1.9 million through the Economic Injury Disaster Loan Program (EIDL) and Paycheck Protection Program (PPP), this figure was elevated to $2.3 million during court proceedings.
Details of the Fraudulent Loans
Leonard received significant payouts, including $491,000 for a PPP loan for his Chicago restaurant, Hamburger Stan, and $561,500 for AJ's Pit Bar-B-Q through EIDL and PPP applications. He also double-dipped by using the AJ's Pit Bar-B-Q bank account for an EIDL loan for BBQ Supply Co, a Chicago restaurant that had closed in 2018, despite knowing it did not meet the operational requirements.
Between May and September 2020, he applied for at least nine COVID relief loans, receiving a minimum of $149,900 for each. After the funds entered his business accounts, he quickly transferred them to his personal TD Ameritrade account. On June 17, 2020, he made a $1.2 million cash purchase of a luxurious five-bedroom house in Evergreen, Colorado, using the fraudulent funds. The house was sold for $2 million in 2024.
Plea Deal and Financial Penalties
In exchange for pleading guilty to defrauding federal aid programs and not paying taxes, prosecutors dropped other charges, including bank fraud, wire fraud, tax evasion, money laundering, and transportation of stolen property. Leonard must pay $2.7 million to the government, covering the $2.3 million stolen and $434,000 in unpaid taxes. He faces a sentencing hearing with a potential prison term of 37 to 46 months.
History of Financial Misconduct
Jared Leonard's trial revealed a decades-long history of grifting across five states. Public records show over 20 tax liens and civil judgments since 2002, involving debts to states, landlords, credit card companies, and private lenders. His shady dealings began small, with civil cases in Arizona in 2002 for unpaid rent, and escalated over the years.
In 2015, he failed to repay a $48,275 loan from Pearl Beta Funding LLC, and in 2018, he was taken to court for $234,443 owed to SPG Advance LLC. In February 2025, a Colorado judge ordered him to pay $670,000 for a $155,000 loan from Rocas LLC, resulting in the seizure of his 2017 Cadillac Escalade, 2015 Porsche Panamera, and restaurant equipment. Between 2002 and 2025, he faced civil court actions for at least $843,579 in unpaid borrowed sums.
The US Attorney's Office declined to comment on the case, and Jared Leonard and his attorney have not responded to requests for comment.
