Jared Leonard, who previously owned the Budlong Hot Chicken chain and other dining establishments in Chicago and Denver, has been sentenced to 30 months in federal prison. He admitted to fraudulently securing over $2.3 million in COVID relief funds and failing to remit more than $430,000 in taxes withheld from his employees.
Leonard, aged 45 and a resident of Littleton, Colorado, received his sentence this month from U.S. District Judge Edmond E. Chang in Chicago. Additionally, Judge Chang ordered Leonard to pay about $2.8 million in restitution to the IRS and the U.S. Small Business Administration, according to federal prosecutors.
Between April 2020 and March 2021, Leonard filed at least ten fraudulent applications for Paycheck Protection Program and Economic Injury Disaster Loan funds. Each application contained false information regarding his businesses, such as employee numbers, payroll costs, gross revenue, and operational status, as detailed in a government sentencing memorandum.
Instead of using the funds to support his restaurants and staff during the pandemic, Leonard allocated most of the money for personal use, including purchasing a large home on more than seven acres in Evergreen, Colorado, buying vehicles, and financing international travel.
According to the sentencing memorandum, Leonard signed a contract to purchase the Colorado property just days after receiving over $1 million from his initial three fraudulent PPP loans. He informed others involved in the transaction that he was “considering doing this deal with all cash.” Leonard spent at least $63,000 on home improvements, including $5,200 for a mattress.
Prosecutors stated that Leonard also used COVID funds to acquire a $31,500 recreational vehicle and a $74,000 Ford F-450 pickup truck. Additionally, he spent the money on routine expenses at restaurants and gas stations, over $5,600 on purchases in Las Vegas, and more than $15,000 at the Four Seasons and other venues in Vail. In October 2020, he spent over $12,000 at the Four Seasons and other locations in Punta Mita, Mexico.
The sentencing memorandum further noted that Leonard neglected to pay federal income, Social Security, and Medicare taxes withheld from his employees. The unpaid withholdings allegedly amounted to more than $430,000 over 15 months.
In November 2024, Leonard faced indictment in Cook County on charges related to sales tax evasion. A warrant was issued for his arrest after he failed to appear in court two months later. Subsequently, Colorado authorities seized several of Leonard’s restaurants due to unpaid taxes. Disgruntled employees informed law enforcement that Leonard was residing in Mexico and running a restaurant there. He was eventually apprehended by Mexican authorities, transported to Denver, and then transferred to federal custody in Illinois.
Reports suggest that Leonard sold the Budlong Hot Chicken chain in 2022.
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