An Alabama restaurant owner has pleaded guilty to wire fraud, money laundering and unlawful employment of aliens after admitting that he fraudulently obtained approximately $866,500 (₹8.28 crore) through federal COVID-19 relief programmes and used part of the money for purposes that were not permitted under the schemes.
Cesar Campos-Reyes, 52, of Auburn, admitted fraudulently applying for and receiving funds through the Paycheck Protection Program and the Economic Injury Disaster Loan programme in May 2020. The programmes were intended to provide financial assistance to eligible small businesses affected by the pandemic.
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According to the U.S. Attorney’s Office for the Middle District of Alabama, Campos-Reyes used $262,145.20 (₹2.50 crore) of the relief money in June 2020 to purchase real estate in Opelika instead of using the funds for their intended business purposes.
Campos-Reyes pleaded guilty on September 9. His plea came more than a year after federal agents searched restaurants and other properties associated with him across Alabama.
COVID Relief Applications Linked to Several Restaurants
The federal case involved relief applications connected to restaurants owned or operated by Campos-Reyes. Earlier court records identified Paycheck Protection Program loans associated with Mariachi’s Mexican Grill and El Patron locations in Pace, Pensacola and Prattville.
The records cited PPP amounts of $70,600 (₹67.43 lakh) for Mariachi’s Mexican Grill, $54,700 (₹52.24 lakh) for an El Patron location in Pace, $74,700 (₹71.35 lakh) for a location in Prattville and $26,900 (₹25.69 lakh) for the Pensacola location.
The records also stated that four Small Business Administration loan transfers of $149,900 (₹1.43 crore) each were moved into Campos-Reyes’ personal bank account in May and June 2020.
His guilty plea establishes that he fraudulently obtained approximately $866,500 (₹8.28 crore) through the PPP and EIDL programmes and did not use the relief funds for their intended purposes.
Campos-Reyes admitted using $262,145.20 (₹2.50 crore) of the relief money to buy real property in Opelika. The transaction formed part of the conduct underlying his money laundering plea.
PPP funds were intended to support eligible business expenses such as payroll, benefits, mortgage interest, rent, utilities and certain other operating costs. COVID EIDL assistance was similarly designed to help businesses recover from economic injury caused by the pandemic.
Federal Agents Searched 14 Alabama Locations
The investigation became public in July 2025 when federal, state and local authorities executed search warrants at 14 locations across Autauga, Baldwin, Crenshaw, Elmore, Lee and Macon counties. Eight of the locations were restaurants.
Campos-Reyes was initially indicted on four counts of bank fraud, four counts of wire fraud and one count of money laundering. He surrendered to federal authorities after the July 15 operation and initially pleaded not guilty.
The case continued until his September 2026 plea to an Information charging wire fraud, money laundering and unlawful employment of aliens.
Campos-Reyes also admitted that, through July 15, 2025, he knowingly hired and employed people at multiple restaurants he owned or operated despite knowing that they were not authorised to work in the United States.
The investigation was led by the FBI, Homeland Security Investigations, the Drug Enforcement Administration and the Alabama Law Enforcement Agency, with assistance from other federal, state and local agencies.
Guilty Plea Carries Potential Federal Prison Terms
Campos-Reyes faces significant potential penalties following his guilty plea. The wire fraud count carries a maximum sentence of 20 years in federal prison, while the money laundering count carries a maximum of 10 years. The unlawful employment count carries a maximum sentence of six months.
Federal prosecutors said he also faces substantial fines and forfeiture of proceeds seized during the investigation. A federal judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors. A sentencing hearing has not yet been scheduled.
The federal prison system does not provide for parole.
Authorities have also stressed the importance of maintaining records showing how federal relief money was used. Businesses receiving PPP or other SBA assistance may be required to provide documents such as payroll records, bank statements, invoices, lease or mortgage documents and receipts to demonstrate that funds were spent for eligible purposes.
Suspected fraud, waste or misuse involving SBA programmes can be reported to the SBA Office of Inspector General, along with information identifying the programme, the person or business involved, the nature and timeframe of the suspected misconduct and any available supporting documentation.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
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