Officials: Auburn man pleads guilty to wire fraud, money laundering and unlawful employment of aliens
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- Auburn man pleads guilty to fraudulently obtaining $866,500 in COVID-19 relief funds through PPP and EIDL programs.
- Defendant misused relief funds for personal real estate purchase and unlawfully employed unauthorized workers at his restaurants.
An Auburn man has pleaded guilty to federal charges stemming from a scheme involving approximately $866,500 in COVID-19 relief funds and the unlawful employment of individuals who were not authorized to work in the United States.
According to the U.S. Attorney’s Office for the Middle District of Alabama, Cesar Campos-Reyes, 52, pleaded guilty on September 9, 2026, to an Information charging him with wire fraud, money laundering and unlawful employment of aliens.
The announcement was made by U.S. Attorney Thomas Govan, FBI Mobile Division Special Agent in Charge Christopher R. Flowers and Homeland Security Investigations Acting Special Agent in Charge Ellen Johnson for Georgia and Alabama.
According to court documents and admissions made as part of Campos-Reyes’ guilty plea, he fraudulently applied for and received approximately $866,500 through the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program in May 2020.
The programs were created under the Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide financial assistance to eligible small businesses affected by the COVID-19 pandemic.
Federal prosecutors said Campos-Reyes admitted that he did not use the relief funds for their intended purposes. In June 2020, he used $262,145.20 to purchase real property in Opelika, according to court documents.
Campos-Reyes also admitted that, through July 15, 2025, he knowingly hired and employed individuals who were not authorized to work in the United States at multiple restaurants he owned or operated, according to the U.S. Attorney’s Office.
“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,” U.S. Attorney Govan said in a statement.
FBI Special Agent in Charge Flowers said the case demonstrates the agency’s efforts to protect taxpayer-funded programs and hold individuals accountable when those programs are allegedly exploited.
HSI Acting Special Agent in Charge Johnson also said the agency will continue working with federal, state and local partners to investigate cases involving pandemic relief fraud and violations of federal employment laws.
Campos-Reyes is scheduled to be sentenced in the coming months.
According to federal prosecutors, he faces a maximum sentence of up to 20 years in federal prison for wire fraud, up to 10 years for money laundering and up to six months for unlawful employment of aliens. He also faces substantial fines and forfeiture of proceeds seized during the investigation.
A federal district judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors. There is no parole in the federal prison system.
The investigation was led by the Federal Bureau of Investigation, Homeland Security Investigations, the Drug Enforcement Administration and the Alabama Law Enforcement Agency.
Additional agencies involved included U.S. Immigration and Customs Enforcement, U.S. Customs and Border Protection, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Alabama Department of Corrections, Auburn Police Department, Opelika Police Department, Prattville Police Department, Wetumpka Police Department, Elmore County Sheriff’s Office, Lee County Sheriff’s Office and the United States Marshals Service.
Federal prosecutors said the investigation also received assistance from the Homeland Security Task Force initiative.
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