MONTGOMERY, Ala. – An Auburn restaurant owner has pleaded guilty to federal charges after admitting he fraudulently obtained about $866,500 in COVID-19 relief funds, used more than $262,000 to buy property and knowingly employed workers who were not authorized to work in the United States.
Cesar Campos-Reyes, 52, pleaded guilty Sept. 9 to wire fraud, money laundering and unlawful employment of aliens.
According to court documents and admissions made as part of his plea, Campos-Reyes applied for and received approximately $866,500 through the Paycheck Protection Program and Economic Injury Disaster Loan program in May 2020.
The programs were created to provide financial assistance to eligible businesses affected by the COVID-19 pandemic.
Prosecutors said Campos-Reyes admitted the money was not used for its intended purposes. In June 2020, he used $262,145.20 of the relief funds to purchase real estate in Opelika.
Campos-Reyes also admitted that through July 15, 2025, he knowingly hired and employed people who were not authorized to work in the United States at multiple restaurants he owned or operated.
A sentencing date has not yet been scheduled.
Campos-Reyes faces 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 potential fines and forfeiture of proceeds seized during the investigation. The maximum penalties do not necessarily reflect the sentence he will receive, which will be determined by a federal judge.
The investigation was led by the FBI, Homeland Security Investigations, Drug Enforcement Administration and Alabama Law Enforcement Agency, with assistance from several other federal, state and local agencies.