5 things to know after Sacramento city councilman Sean Loloee indicted on federal charges
Sacramento City Council member Sean Loloee was indicted by a federal grand jury after years of controversy.
Following the 25-count indictment, which was unsealed Friday, Loloee will be charged with conspiracy to defraud the U.S. Department of Labor, possession of false immigration documents, using a false immigration document, obstruction of agency proceedings, falsifying records and wire fraud.
The councilman was indicted along with Karla Montoya, the general manager of Loloee’s four Viva Supermarkets, on allegations that they hired employees who used fake immigration documents.
The indictment comes after a string of accusations, including wage law violations.
These are the five things to know:
Who is Sean Loloee?
Shahriar “Sean” Loloee represents District 2 in North Sacramento on the Sacramento City Council. That district includes the neighborhoods of Robla, Del Paso Heights and Old North Sacramento.
The 53-year-old is the founder and CEO of local grocery chain Viva Supermarket.
According to his biography on the city’s website, Loloee’s platform focuses on addressing homelessness and mental health, youth opportunities and revitalizing Del Paso Heights and Marysville Boulevard.
Loloee was elected to office in 2020 in the nonpartisan race. His term ends on Dec. 9, 2024.
What are the charges facing Sacramento City Council member?
According to the indictment, the councilman allegedly mistreated employees at Viva stores — in his district, as well as in Rancho Cordova and Dixon, using “an atmosphere of intimidation” and making clear he “knew who was ‘illegal.’”
He’s also accused of threatening employees with immigration consequences and requiring workers who didn’t speak English to sign documents without having them translated from English.
The indictment says Loloee and Montoya “deployed this system of maintaining an undocumented labor force in all Viva Supermarkets across many years.”
During raids on Loloee’s home and businesses in October, officials allegedly found fake Social Security cards and permanent resident cards for nearly 300 supermarket workers.
According to the indictment, Loloee also paid some employees in cash without pay stubs and had workers cash checks at Western Union offices inside Viva Supermarkets, where they were charged a 2% surcharge.
In October, federal officials temporarily shuttered three Viva Supermarkets, located in North Sacramento, Del Paso Heights and Rancho Cordova, following accusations that Loloee has been withholding wages.
Loloee’s home in Hagginwood and his wife’s home in Granite Bay were also raided.
He’s been under scrutiny by federal prosecutors since 2009.
Investigators said he violated federal minimum wage, overtime compensation, record keeping and child labor laws, according to The Sacramento Bee’s previous reporting.
A follow-up federal investigation in 2020 found that he allegedly violated these laws again, and then a third investigation alleged he coerced employees.
The U.S. Department of Labor sued Loloee in 2022 after he reportedly threatened to deport workers at his Viva Supermarket chain.
READ MORE: “Federal indictment unsealed: Sacramento councilman Loloee faces charges of fraud and obstruction”
“Federal authorities close stores owned by Sacramento city councilmember during raid”
“Sean Loloee’s troubles: A timeline of investigations related to the Sacramento city councilman”
Is councilman going to resign?
Since the raids, there’s been mounting pressure for Loloee to resign from the city council.
In a November council meeting, Latino activists urged Loloee to step down, with one citing complaints from Viva Supermarket employees that they did not receive breaks and that the councilman threatened them with deportation.
“I’ve heard stories about people being threatened, I’ve heard stories of people being stalked,” Carolina Flores, retired social worker and activist, said at the meeting. “People being followed into the night ... people have come up and told them, ‘You better shut your mouth if you know what’s good for you.’”
The Sacramento Democratic Party and the executive director of the Central Labor Council, Fabrizio Sasso, are also calling for Loloee’s resignation.
He said last month he would not seek re-election for the 2nd Council District.
But Loloee told The Bee in November that he would not resign; Loloee maintained his stance as the indictment was unsealed.
“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 a statement to The Bee before he surrendered at the federal courthouse for an expected 2 p.m. hearing.
READ MORE: ”’He is so dangerous’: Sacramento councilman faces resignation pressure after federal raid”
What are other controversies facing Loloee?
The embroiled councilman is under fire for other concerns too.
In November, The Bee reported Loloee violating vehicle codes at his home in the Hagginwood neighborhood.
For at least two months, about eight cars belonging to residents at Loloee’s house were parked on gravel when they needed to be on pavement, according to city code. Six of the vehicles were also in front of the neighbor’s yard.
This came after Loloee faced controversy about whether he lived in North Sacramento — the district he was elected to serve.
READ MORE: “Sacramento councilman has vehicles violating code parked in his yard. Will city take action?”
Also in November, Loloee reportedly evicted tenants from an apartment building in Hagginwood that he bought in 2022.
“The owner wanted to rehabilitate the units,” Frank Thornton of Second Chance Property Management told The Bee. “They got cleared out.”
READ MORE: “Embattled Sacramento councilman recently evicted eight households, property manager says”
Loloee is also accused of destroying evidence.
In June, the councilman was required to file documents requested by acting U.S. Labor Secretary Julie Su, in regards to the grocery chain lawsuit. The document requests “remained deficient,” court filings stated.
In August, Loloee told officials “he had failed to produce certain documents and destroyed data relevant to this investigation” and proceeded to miss the deadline to provide more documentation on Oct. 21.
READ MORE: “Federal officials accuse Sacramento councilman Sean Loloee of destroying evidence”
What happens next?
Loloee was expected to surrender to the U.S. Marshals Service at the downtown federal courthouse Friday morning and will be arraigned later in the day.
“The charges are very troubling,” Sacramento Mayor Darrell Steinberg said Friday. “I talked to the council member 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.”
READ MORE: “Sean Loloee, embattled Sacramento councilman, indicted for federal obstruction, COVID relief fraud”
If Loloee resigns from his seat on the Sacramento City Council before the end of his term in December 2024, the council will appoint someone to finish the term.
READ MORE: “Exclusive: Embattled Sacramento councilman Sean Loloee will not seek re-election”
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