07-03-2025
Denver restaurant seized by Colorado Department of Revenue after employees quit over missing wages
The Colorado Department of Revenue has seized multiple properties, including a popular Denver BBQ restaurant, after they said the owners failed to pay taxes for years.
The entire staff of AJ's Pit Bar-B-Q in Denver recently quit, stating owner Jared Leonard had been taking taxes from their paychecks and then not putting that money towards taxes. They told CBS Colorado that Leonard has been out of the country for months and the employees made the decision on their own to close the doors.
According to AJ's website, the Texas-style Bar-B-Q restaurant was recognized in the 2023 MICHELIN Guide Colorado.
Former AJ's General Manager Patrick Klaiber said he questioned Leonard's tax practices and legal action Leonard was facing, but was told it was nothing to worry about. He said staff paychecks would bounce, payments were made using Venmo or Zelle, and some employees are now receiving notices from the IRS that they owe taxes they thought were being paid.
"After I found out what I found out, I told all the staff. I said, 'Hey, I can't work for this guy anymore, you probably shouldn't either. So, I'm going to be walking out the door this weekend.' And everyone got behind me. Everyone knew what was going on, I told them every step of the way," said Klaiber.
The restaurant has been closed since.
Leonard has been behind a number of restaurants across the metro area that have closed over the years, including two in Lakewood that shut down just last month with little notice to those employees.
On Wednesday, the Colorado Department of Revenue posted notices outside AJ's stating that it is seizing several properties under Leonard's AU FEU DENVER LLC for unpaid taxes.
Properties seized include Zepplin Station and AJ's Pit Bar-B-Q in Denver as well as a home located in the 300 block of Elmgreen Lane in Evergreen.
A Notice of Public Sale posted on the door of AJ's on March 5 states the properties will be placed up for sale to pay $65,478.10 owed to the department. Statements posted outside the restaurant show taxes owed reaching back to 2022. The notice said the sale would include the property, furniture, fixtures, equipment and inventory at the locations.
The date, time and location of the sale have yet to be determined.
CBS Colorado reached out to Leonard for comment, but has not heard back.
