Auburn Man Charged with Federal Program Fraud Makes His Initial Appearance in Court

MONTGOMERY, Ala. – On Friday, July 18, 2025, Cesar Campos-Reyes, 52, a naturalized U.S. citizen and resident of Auburn, Alabama, made his initial appearance in federal court following his arrest earlier this week, announced Acting United States Attorney Kevin Davidson.

On July 15, 2025, federal, state, and local law enforcement agencies executed search warrants at multiple properties associated with Campos-Reyes after a federal grand jury returned an indictment charging him with four counts of bank fraud, four counts of wire fraud, and one count of money laundering. These charges stem from an alleged scheme involving federal program fraud. In total, law enforcement searched 14 locations across six Alabama counties—Autauga, Baldwin, Crenshaw, Elmore, Lee, and Macon. Eight of the 14 locations were restaurants.

During today’s hearing, Campos-Reyes pleaded not guilty to all charges. A federal magistrate judge set the trial date for November 3, 2025, and scheduled a detention hearing for July 23, 2025, to determine whether Campos-Reyes will remain in custody pending trial. He is currently being held by the United States Marshals Service. If convicted on all counts, Campos-Reyes faces up to 30 years in federal prison and significant financial penalties. There is no parole in the federal system.

As part of Tuesday’s enforcement actions, three Mexican nationals—Luis Miguel Campos-Reyes, Isaac Fernandez-Lopez, and Marco Antonio Guzman—were also arrested and face federal charges. Luis Campos-Reyes and Fernandez-Lopez were each charged with harboring and unlawfully employing aliens, an offense punishable by up to one year in prison. Guzman was charged with possession of a controlled substance with intent to distribute, which carries a maximum sentence of 20 years in prison. All three are scheduled for their initial appearances in court later this afternoon.

An indictment or criminal complaint is merely an allegation. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The July 15 operation and resulting charges are the culmination of a coordinated investigation led by the Federal Bureau of Investigation (FBI), Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), and the Alabama Law Enforcement Agency (ALEA). Additional support was provided by the U.S. Immigration and Customs Enforcement (ICE), U.S. Customs and Border Protection (CBP), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Alabama Department of Corrections, United States Marshals Service, and the police departments of Auburn, Opelika, Prattville, and Wetumpka, as well as the Elmore, Lee, and Macon County Sheriff’s Offices.

Significant operational support was also provided by the Gulf of America Homeland Security Task Force, a joint enforcement initiative led by the FBI and HSI.

This case is being prosecuted by Assistant United States Attorneys Michelle R. Turner and John J. Geer III.