An Auburn restaurant owner who was previously the focus of a multi-agency investigation has pleaded guilty to federal charges involving COVID relief fraud and the employment of unauthorized workers.
Cesar Campos-Reyes, 52, pleaded guilty Wednesday to wire fraud, money laundering and unlawful employment of aliens, the U.S. Attorney’s Office for the Middle District of Alabama announced.
According to court documents and admissions made as part of his guilty plea, Campos-Reyes fraudulently applied for and received approximately $866,500 through the Paycheck Protection Program and Economic Injury Disaster Loan program in May 2020.
Both programs were established under the Coronavirus Aid, Relief, and Economic Security Act to provide financial assistance to eligible small businesses affected by the COVID-19 pandemic.
Campos-Reyes admitted he did not use the relief money for its intended purposes. Instead, in June 2020, he used $262,145.20 to purchase real property in Opelika.
He also admitted that through July 15, 2025, he knowingly hired and employed unauthorized workers at multiple restaurants he owned or operated, despite knowing they were not permitted to work in the United States.
“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 Thomas 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.”
The guilty plea follows a multi-agency law enforcement operation involving several of Campos-Reyes’ businesses.
Yellowhammer News reported earlier that law enforcement officers executed search warrants at El Patron Mexican restaurant locations owned by Campos-Reyes in Autauga, Elmore, Crenshaw, Lee and Baldwin counties. Campos-Reyes was not found during the searches but surrendered to authorities later that night.
During the operation, U.S. Immigration and Customs Enforcement detained 48 people at the restaurants who were accused of working without proper documentation. Three other arrests were also made — two on charges of harboring undocumented immigrants and one on a controlled substance charge.
The investigation and resulting charges were led by the FBI, Homeland Security Investigations, Drug Enforcement Administration and Alabama Law Enforcement Agency. Additional assistance was provided by 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 U.S. Marshals Service.
Campos-Reyes will be sentenced at a hearing to be scheduled in the coming months. He faces a maximum of 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 the forfeiture of proceeds seized during the investigation. A federal district judge will determine his sentence after considering the U.S. Sentencing Guidelines and other statutory factors. There is no parole in the federal system.
Sherri Blevins is a staff writer for Yellowhammer News. You may contact her at [email protected].
