Montgomery, Ala. – The grimy details of federal program fraud are laid bare as 52-year-old Cesar Campos-Reyes, a man from Auburn, Alabama, finds himself in federal custody for crimes related to loans obtained under the Coronavirus Aid Relief and Economic Security (CARES) Act.
The United States Attorney Kevin Davidson announced that Campos-Reyes has been indicted by a federal grand jury on four counts of bank fraud, four counts of wire fraud, and one count of money laundering. A criminal indictment is merely an allegation, and Campos-Reyes is presumed innocent until proven guilty beyond a reasonable doubt in court.
Campos-Reyes is accused of making false representations to secure multiple loans for his restaurants through the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program. These programs were designed to provide small businesses with the capital needed to cover essential operating expenses during the pandemic. However, it is alleged that Campos-Reyes misused the funds for unauthorized purposes.
The investigation into Campos-Reyes’s activities was a collaborative effort involving the Federal Bureau of Investigation (FBI), Drug Enforcement Administration (DEA), U.S. Homeland Security Investigations (HSI), Alabama Law Enforcement Agency (ALEA), and numerous local law enforcement agencies. This operation was significantly supported by the Gulf of America Homeland Security Task Force.
Conviction on all charges could lead to a sentence of up to 30 years in federal prison, along with substantial fines. The case is being prosecuted by Assistant United States Attorneys Michelle R. Turner and John J. Geer, III, as part of Operation Take Back America, a nationwide initiative aimed at combating illegal immigration, eliminating cartels, and protecting communities from violent crime.
This case underscores the Department of Justice’s commitment to holding individuals accountable for misusing federal funds intended to help struggling businesses during these unprecedented times.
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Key Facts
- State: Alabama
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Drug Trafficking|Organized Crime
- Source: Official Source ↗
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