Cleveland restaurateur faces felony trial over alleged misuse of $846,720 in COVID relief and bad checks
Case centers on Restaurant Revitalization Fund award and separate allegations of unpaid wages
A Cuyahoga County grand jury indictment has set the stage for felony court proceedings involving Marcelo Fadul Neves, 59, a former owner of two restaurants in Greater Cleveland. Prosecutors allege Neves improperly used federal pandemic-era Restaurant Revitalization Fund (RRF) money awarded for a Cleveland business and, separately, passed bad checks to multiple people, including employees, over a multi-year period.
Neves has entered not-guilty pleas to 15 felony counts. The charges include aggravated theft, telecommunications fraud, tampering with records, grand theft, and multiple counts of passing bad checks.
What prosecutors allege happened with the federal funds
The indictment alleges Neves applied in 2021 for an RRF award connected to Crop Bistro in Cleveland and received $846,720. Prosecutors contend the restaurant was already closed when the application was submitted and did not reopen after the award.
Authorities allege the RRF money was then used for purposes not permitted by the program, including personal expenses, paying debts, and purchasing Bistro on the Falls in Olmsted Falls. That restaurant has since closed.
Bad-check allegations tied to payroll and other payments
In addition to the RRF-related allegations, prosecutors say Neves wrote bad checks between 2020 and 2024 totaling more than $140,000 to multiple individuals, including workers at his restaurants. Those alleged losses are separate from the pandemic-relief sum cited in the indictment.
Charges filed in an indictment are allegations. A defendant is presumed innocent unless and until proven guilty in court.
How the Restaurant Revitalization Fund was designed to work
The RRF was created to help restaurants and similar food-and-beverage businesses cover specified operating costs tied to pandemic disruption. Program rules generally limited spending to defined categories such as payroll costs, rent, utilities, and food and beverage expenses, among other eligible business expenses during the covered period. Funds used outside allowable categories could trigger repayment demands and, when combined with evidence of fraud, criminal scrutiny.
Investigation and next steps in court
The investigation was conducted by the U.S. Secret Service Money Laundering Task Force with local law-enforcement assistance. Neves was arrested on March 11, 2025, in Westlake, and later appeared in Cuyahoga County Common Pleas Court for arraignment, where he pleaded not guilty.
Defendant: Marcelo Fadul Neves, 59
Businesses cited in the case: Crop Bistro (Cleveland) and Bistro on the Falls (Olmsted Falls)
Core allegations: misuse of $846,720 in RRF funds and issuance of more than $140,000 in bad checks (2020–2024)
Further proceedings will determine whether the case advances to trial, is resolved through motions or negotiated pleas, or results in dismissal of some or all charges. Any restitution, repayment, or sentencing outcomes would depend on court findings and the final disposition of the case.