A former high-ranking San Francisco 49ers executive is facing dozens of felony charges after prosecutors accused him of helping funnel approximately $1.4 million from taxpayer-funded construction projects into an elaborate kickback scheme involving a childhood friend.
James “Jim” Mercurio, 55, who spent nearly 30 years with the NFL franchise and served as executive vice president and general manager of Levi’s Stadium, was indicted alongside longtime friend Michael McLennan, 66, following an investigation into construction contracts at the San Mateo County Event Center in California.
Prosecutors allege the two men exploited their positions and personal relationship to divert public money intended for improvements to the county-owned property.
The alleged scheme began after Mercurio was hired in 2024 to oversee three major construction projects at the Event Center. Each project received approximately $1 million in county taxpayer funding.
Instead of ensuring the work was awarded through proper procedures, investigators say Mercurio directed lucrative construction contracts to McLennan.
McLennan then allegedly returned portions of the payments to Mercurio, creating a kickback arrangement that prosecutors say involved approximately $1.4 million.
The operation might have remained hidden longer if businesses working on the projects hadn’t started complaining about missing payments.
According to San Mateo County District Attorney Steve Wagstaffe, investigators began examining the financial arrangements after a subcontractor reported not getting paid.
The investigation took a significant turn when someone requested proof of a performance bond, a financial guarantee intended to protect a project if a contractor fails to meet its obligations.
Prosecutors allege the document provided was fraudulent.
That discovery prompted a deeper investigation into the contracts, payments, and financial dealings between the two men.
A grand jury spent two weeks reviewing evidence before returning an indictment.
Wagstaffe described the allegations as an exceptionally serious example of white-collar crime involving public funds.
“We’re only talking about a year and a half and $1.4 million, but for San Mateo County that’s big,” he told The California Post.
The district attorney said jurors were particularly angered by the evidence presented during the proceedings.
Both men face two counts of misappropriating public money, one count of embezzlement, and 20 counts of commercial bribery. McLennan also faces a felony forgery charge connected to the allegedly fabricated performance bond.
Prosecutors have included aggravated white-collar crime allegations involving a pattern of related felonies and losses exceeding $500,000, which could increase potential penalties if the defendants are convicted.
Mercurio and McLennan pleaded not guilty during their October 8 arraignment.
At a subsequent hearing, defense attorneys sought reductions in their clients’ $750,000 bail amounts, but a judge rejected the requests. Both men remained in custody following the hearing.
The case represents a dramatic fall for Mercurio, who built a lengthy career with one of the NFL’s most recognizable franchises.
He worked for the 49ers for nearly three decades, rising through the organization’s stadium operations department before eventually becoming a senior executive responsible for Levi’s Stadium.
He left the franchise in 2023 and later took the position overseeing construction at the San Mateo County Event Center.
His attorney, Brian Getz, has defended his reputation and pointed to his decades of professional and community involvement.
“James Mercurio has a solid record of community service and was a successful executive with the San Francisco 49ers for 30 years,” Getz said.
The attorney added that Mercurio has never previously been convicted of a crime and expressed confidence in his client.
McLennan’s attorney, Michael Guingona, has declined to discuss the allegations in detail while reviewing the evidence.
The scandal has also prompted San Mateo County officials to examine oversight of Event Center construction projects and how public money was managed.
Wagstaffe said the case demonstrates why government agencies must carefully monitor contractors and financial arrangements rather than relying solely on personal relationships or professional reputations.
“There’s got to be a check and balance. There’s got to be oversight,” he said.
County officials have also indicated that they intend to audit the projects and review how the work is managed going forward.
The criminal proceedings are expected to continue November 16, when the court is scheduled to address future hearing and trial dates.
For now, the former NFL executive and his longtime friend face serious allegations involving millions in public construction funding, while prosecutors work to prove that taxpayer dollars were improperly diverted for personal gain.
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