Former 49ers Executive Charged in $1.4 Million Kickback Scheme

A former executive for the San Francisco 49ers, James Cunningham Mercurio, faces multiple felony charges for his alleged involvement in a $1.4 million kickback scheme involving taxpayer-funded construction projects in San Mateo County.

Mercurio, 55, who worked for the 49ers for nearly three decades in stadium operations, rising to executive vice president and general manager, was hired by the county’s Event Center in 2024 to oversee three construction projects. Prosecutors allege that Mercurio steered contracts to his friend, identified as McLennan, who then allegedly returned portions of the payments to Mercurio instead of using the funds for construction.

According to San Mateo County District Attorney Steve Wagstaffe, the alleged kickbacks to Mercurio totaled approximately $1.4 million over about 18 months. Wagstaffe described the scheme as an "extraordinarily serious" example of white-collar crime, noting its significance for the county budget.

An indictment unsealed last week charged both Mercurio and McLennan with two counts of misappropriating public money, one count of embezzlement, and 20 counts each of commercial bribery. McLennan also faces a felony forgery charge related to an allegedly fabricated performance bond.

Prosecutors have also included aggravated white-collar crime allegations, citing a pattern of related felonies and the misappropriation of over $500,000.

Both defendants pleaded not guilty at their arraignment on October 8. Court records indicate Mercurio posted a $750,000 bond.

The investigation reportedly began after McLennan failed to make payments to subcontractors. When one subcontractor requested to inspect the performance bond, county attorneys discovered it was allegedly fake, leading to further investigation.

Wagstaffe emphasized the need for rigorous oversight and verification when taxpayer money is involved, citing the case as a lesson for government agencies. He also referenced a separate case where Clarise Blanchard, a former San Mateo County Woman of the Year, was sentenced to jail for embezzling over $813,000 from a nonprofit.

Mercurio's attorney, Brian Getz, defended his client, highlighting his long tenure with the 49ers and his community ties. McLennan's attorney declined to comment, stating he had not yet received discovery materials.