Two men, including a former San Francisco 49ers executive, are facing embezzlement charges in an alleged $1.4 million kickback scheme involving San Mateo County Event Center construction projects.
Vacaville resident James Mercurio, 55, and Los Altos resident Michael Joseph McLennan, 66, have each been charged with 20 counts of commercial burglary by the San Mateo County District Attorney's Office, according to court documents.
Mercurio spent nearly 30 years as an executive with the 49ers before being laid off in 2023. He and McLennan allegedly conspired to embezzle $1.4 million from construction projects involving county money.
Mercurio was hired in 2024 by the San Mateo County Event Center, a facility that hosts large events like the San Mateo County Fair. He was hired to oversee three construction projects, each involving $1 million in funding from county tax dollars.
Mercurio directed construction contracts to McLennan, his childhood friend, according to the District Attorney's Office. McLennan allegedly then gave a portion of the contract money back to Mercurio in a kickback scheme.
The suspected embezzlement came to light when one of the construction companies for the projects reported to the county that it was not getting paid, prosecutors said.
After two weeks of going over evidence, a grand jury indicted the two men and they were both arrested. The charges were filed and the pair each pleaded not guilty to all charges at Thursday's arraignment.
Mercurio and McLennan remain in custody on $750,000 bail each.
Brian Getz, Mercurio's defense attorney , said in an interview that he is confident in Mercurio's innocence. Despite living in Vacaville now, Mercurio has lived in San Mateo County almost his entire life, according to Getz.
"James Mercurio has a solid record of community service and was a successful executive with the San Francisco 49ers for 30 years," Getz said. "He's never been convicted on any crime. He's a grandfather and a father who lived almost his whole life in San Mateo ... I have every confidence in James Mercurio as a person and as a litigant."
McLennan's defense attorney did not respond to a request for comment.
The pair are scheduled to return to court Monday to set pretrial dates. Motions from the defendants to lower their bail amounts will also be heard.
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