AJ’s Pit Bar-B-Q owner indicted for fraud, accused of misusing PPP loans
A former Denver restaurateur has been arrested and indicted on charges of fraud, with federal prosecutors alleging that he fraudulently obtained over $1 million in pandemic relief loans for personal gain.
Jared Leonard, the owner of the Michelin-recommended AJ’s Pit Bar-B-Q, appeared in the U.S. District Court of Colorado in Denver last week. He has been ordered to be transferred to the northern district of Illinois in Chicago, where the charges were originally filed. Leonard is currently in federal custody.
Leonard’s restaurant group in Colorado ceased operations in February after the staff of AJ’s Pit Bar-B-Q resigned and accused him of financial misconduct. He had previously closed down two other establishments, Grabowski’s Pizzeria and Campfire. Leonard claimed to have moved to Mexico to manage his remaining restaurants in the Punta Mita resort community.
According to court documents, Leonard applied for over $1.6 million in loans under the Coronavirus Aid, Relief, and Economic Security Act. Prosecutors allege that he falsified information about his restaurants’ employees and payroll in his loan applications.
Despite claiming the funds were for business purposes, Leonard allegedly used the money for personal expenses, including purchasing a $1.2 million house in Colorado in 2020. He faces seven charges, including bank and wire fraud, and could be required to repay $1.9 million to the federal government.
The Colorado Department of Revenue auctioned off AJ’s Pit Bar-B-Q after Leonard’s departure, and the restaurant now operates under new ownership as Riot BBQ Co. Patrick Klaiber, the former pitmaster, and chef Manny Barella are now leading the restaurant.
“I’m relieved that justice is being served,” Klaiber commented on the case.
Other businesses linked to Leonard in the case include Hamburger Stan in Chicago and an organization called SS Collective.
Originally Published:
