Judge refuses to reduce bail for former 49er exec from Los Altos accused in kickback scheme

BY NORAH SHEPPARD-HUTCHINS
Daily Post Staff Writer

A judge has denied a request to reduce the $750,000 bail for two men accused of participating in a $1.4 million kickback scheme involving San Mateo County Event construction projects.

Presiding Judge Stephanie Garratt denied the request to lower bail because James Mercurio, 66, of Los Altos, and Michael McLennan, 55, of Vacaville, face up to 10 years in state prison because of the scale of the theft. Garratt decided to maintain their bail amount on Monday (Oct. 12), convinced that a conviction could motivate them to flee, according to District Attorney Steve Wagstaffe.

Both men have been charged with 20 counts each of commercial burglary.

Mercurio was hired as the construction project manager for the San Mateo County Event Center to oversee three construction projects.

He directed contracts to his childhood friend, McLennan, who then gave a portion of the contract money to Mercurio. The contracts included $1 million in funding from county tax dollars, Wagstaffe said.

An investigation into the two began about six months ago when subcontractors went to the County Attorney’s Office after McLennan allegedly failed to pay them. The county attorney reviewed a performance bond, which guarantees that a contractor will finish the job according to the contract’s terms.

However, Wagstaffe said the bond was found to be fake and forged by McLennan.

Mercurio was an executive with the 49ers for about 30 years. He then worked as construction project manager for the event center from October 2024 to March 2026.

Each of them has pleaded innocent to all charges.