James “Jim” Cunningham Mercurio spent nearly three decades working with the San Francisco 49ers, eventually serving as general manager of Levi’s Stadium. But his career now faces scrutiny over allegations involving publicly funded construction projects, a childhood friendship, and payments investigators say were never justified.

Mercurio, 55, has been charged in an alleged $1.4 million kickback scheme involving construction projects at the San Mateo County Event Center in California. Prosecutors allege he steered contracts to his childhood friend, Michael Joseph McLennan, who allegedly returned portions of the money to Mercurio. Both men pleaded not guilty following their indictment, according to the reports.

Mercurio joined the San Mateo Event Center in 2024 as a construction project manager after the 49ers laid him off in 2023. His responsibilities included overseeing three projects. Per reports, each project involved approximately $1 million in county funding. The projects included a bathroom renovation, an RV park, and a resiliency center.

According to prosecutors, Mercurio directed construction contracts to McLennan instead of putting the work out for competitive bidding. McLennan allegedly returned portions of the contract money to Mercurio through direct payments and purchases of goods and services. Investigators calculated the alleged kickbacks at approximately $1.4 million.

“He was supposed to put it out for bid,” San Mateo County District Attorney Stephen Wagstaffe said. “McLennan was just a small contractor who suddenly got into some big time contracts. … McLennan would kick back part of that money he was paid to Mercurio for steering the contract to him. I mean, major kickbacks of money that Mercurio was not entitled to because he was being paid by the events center close to a million dollars just as the project manager for all these projects.”

Prosecutors have clarified that the alleged kickbacks only involved the bathroom renovation and RV park projects.

The suspected scheme came to light after one of the construction companies reported to the county that it had not received payment. At the same time, prosecutors alleged that McLennan falsified a construction performance bond, a financial guarantee associated with construction work. The issue reportedly emerged when an unpaid contractor approached the county attorney, and the attorney discovered that the expected bond was missing.

A grand jury reviewed evidence for approximately two weeks before indicting the two men.

Per reports, Mercurio and McLennan each face 20 counts of commercial burglary. Meanwhile, the charges also include embezzlement, misuse of public funds, and bribery; McLennan additionally faces a forgery charge.

Both defendants pleaded not guilty at their reported October 8 arraignment. Reports published the following days stated that each was held on $750,000 bail. However, Mercurio’s attorney, Brian Getz, expressed confidence in his client’s innocence.

“Jim Mercurio has never had so much as a parking ticket his entire life. He has a solid record for community service and has been an executive in both the public and the private sector for more than three decades,” Getz said. “We look forward to resolving it in court.”

That said, as of now, the $1.4 million figure remains an alleged amount, not a judicial finding of guilt. Mercurio and McLennan are presumed innocent unless proven guilty in court.