Sacramento City Council member Sean Loloee indicted by grand jury for conspiracy, obstruction, and false immigration documents
Sacramento City Council member Sean Loloee and Viva Supermarket general manager Karla Montoya have been indicted on 25 counts of conspiracy, obstruction, and use of false immigration documents in connection with the Viva Supermarket chain, according to court documents filed in the United States District Court for the Eastern District of California.
The indictment, which was unsealed on Friday, also includes charges of pandemic relief fraud against Loloee.
Both Loloee and Montoya pleaded not guilty to all counts during a court appearance on Friday, and Loloee released a statement to KCRA 3 expressing shock at the news of his indictment.
“Today’s news comes as a shock, particularly since I came to this country as a teenager in 1989 with absolutely nothing and have worked tirelessly to meet the needs of the underserved in both my grocery stores and as a member of the city council; both of which I will continue to do as I fight these allegations,” Loloee said in the statement.
William Portanova, the attorney representing Sean Loloee, stated, “There are allegations in the indictment for which we’ve seen no evidence when we see the evidence, we’ll make an evaluation as to whether it’s credible.”
The court documents claim that since 2008, Loloee and Montoya employed a significant number of workers who weren’t authorized to work in the United States for the purpose of reducing labor force costs through unlawful means, including by failing to pay required overtime wages.
The indictment also alleges that both Loloee and Montoya obstructed Department of Labor investigations into Viva Supermarkets in 2020 by making false statements, telling employees to lie to investigators, listening in on employee statements, and attempting to hide certain workers.
Ramona Landeros, who has been working with former Viva Supermarket employees, stated that people were being exploited and faced unfair working conditions. Landeros is working with the Benito Juarez Association, which has provided legal workshops and taught individuals how to file reports regardless of their immigration status.
In addition to the charges related to Viva Supermarket, Loloee is also accused of wire fraud when he applied for COVID-19 relief by underreporting his store’s gross receipts to make them entitled to money from the Restaurant Revitalization Fund program.
Both Loloee and Montoya were not ordered to be detained since they turned themselves in. Loloee has been the subject of a Department of Labor lawsuit since April of last year, facing alleged labor violations in his stores and companies. Federal agents raided his grocery stores, home, and other businesses in October as part of a criminal investigation.
Loloee had previously been accused of destroying evidence related to his grocery store business in a federal court filing from October, in which he told investigators that he “had failed to produce certain documents and destroyed data relevant to this investigation.”
Attorney Mark Reichel, who works in federal cases like this one, stated that Loloee will have to prove that he didn’t have criminal intent at the time when he committed the alleged violations.
Loloee, who represents Sacramento’s District 2, has resisted calls to resign from his position as he faces legal troubles. The indictment lists his residence as Granite Bay, and a separate controversy last year had centered on whether Loloee’s primary residence was in his north Sacramento district.
Sacramento Mayor Darrell Steinberg said in a statement, “The charges are very troubling. I talked to the Councilmember this morning and will be speaking with him throughout the day. He has the right to due process, and he also has an obligation to do the right thing by District 2 and by the city. I expect the situation to be resolved within the next 24 hours.”
Loloee and Montoya are scheduled to appear back in court on Dec. 18.