An Auburn man has pleaded guilty to federal charges relating to a scheme to fraudulently obtained federal COVID relief funds and to unlawfully employ aliens who were not authorized to work in the United States.
Cesar Campos-Reyes, 52, pleaded guilty to charges of wire fraud, money laundering and unlawful employment of aliens, said United States Attorney Thomas Govan. Campos-Reyes is a man at the center federal raids in 2025 who was listed as owner of several Mexican restaurants in central and south Alabama.
"Federal COVID relief funds were intended to help legitimate businesses and their employees, not to be diverted for personal gain or used to support an unlawful workforce," said Govan. "This defendant defrauded programs designed to assist American businesses, misused taxpayer-funded assistance, and knowingly employed individuals who were not authorized to work in the United States. We will continue to hold accountable those who abuse federal programs and violate federal law."
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According to court documents and admissions made as part of his guilty plea, in May 2020, Campos-Reyes fraudulently applied for and received approximately $866,500 in funds through the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program. The PPP and EIDL programs were established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide financial assistance to eligible small businesses affected by the COVID-19 pandemic.
Campos‑Reyes admitted that he did not use the relief funds for their intended purposes, Govan said. Instead, in June 2020, he used $262,145.20 to purchase real property located in Opelika. Campos‑Reyes further admitted that, up to July 15, 2025, he knowingly hired and employed unauthorized aliens at multiple restaurants he owned or operated, fully aware that they were not permitted to work in the United States, Govan said.
A sentencing hearing for Campos-Reyes will be scheduled in the coming months.
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This article originally appeared on Montgomery Advertiser: Auburn man pleads guilty in COVID relief fraud scheme