Auburn man pleads guilty to wire fraud, money laundering, employing illegal immigrants
MONTGOMERY, Ala. (WAKA) – An Auburn man has pleaded guilty to federal charges stemming from a scheme to fraudulently obtain federal COVID relief funds and to unlawfully employ illegal immigrants who were not authorized to work in the U.S.
U.S. Attorney Thomas Govan says 52-eyar-old Cesar Campos-Reyes pleaded guilty to wire fraud, money laundering and unlawful employment of aliens.
“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,” Govan said. “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.”
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 property in Opelika.
Govan said Campos‑Reyes further admitted that, up to July 15, 2025, he knowingly hired and employed unauthorized immigrants at multiple restaurants he owned or operated, fully aware that they were not permitted to work in the U.S.
He faces a maximum penalty of 20 years in federal prison for wire fraud, up to 10 years for money laundering, and up to six months in prison for unlawful employment of aliens. Campos-Reyes also faces substantial fines and the forfeiture of proceeds seized during the investigation. There is no parole in the federal system.
