Viva Supermarkets manager convicted in U.S. labor and immigration fraud case

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Viva Supermarkets fraud case

Highlights

Karla Montoya, general manager of Viva Supermarkets, convicted for hiring undocumented workers, using false documents, and obstructing Department of Labor investigations.
Montoya faces sentencing on Jan. 7, 2027, with possible penalties including up to 10 years in prison and $250,000 fines for each false-document count.
Owner Sean Loloee and co-defendants pleaded guilty to related tax and fraud charges, with sentencing for three on Nov. 19, 2026.

Conviction details and prosecution timeline

As reported by U.S. Citizenship and Immigration Services, citing the U.S. Attorney’s Office for the Eastern District of California, Karla Montoya, general manager of the Sacramento-area grocery chain Viva Supermarkets, is found guilty for her role in a long-running scheme involving the hiring of undocumented workers, the use of false immigration documents, and the obstruction of two Department of Labor proceedings.

U.S. Citizenship and Immigration Services said it provided pivotal assistance in the case. Court documents and trial evidence show Montoya worked closely with Viva Supermarkets owner and former Sacramento City Councilmember Sean Loloee to hire undocumented workers across the chain’s Sacramento-area stores.

Prosecutors say Montoya knowingly accepted fake Green Cards and Social Security cards during hiring for many employees, including her own false immigration documents. The case also involves off-the-books payments and irregular pay practices, including the deprivation of overtime pay to workers.

Montoya is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on Jan. 7, 2027. She faces a maximum statutory penalty of five years in prison and a fine of up to $250,000 for conspiracy, up to 10 years in prison and a fine of up to $250,000 for each false-document count, and five years in prison and a fine of up to $250,000 for obstruction of an agency proceeding.

Labor investigation impact and related defendants

Authorities say Montoya joined Loloee in obstructing two Department of Labor Wage and Hour Division investigations, including by hiding employees likely to provide unfavorable information and interfering with investigators on site. Prosecutors say that conduct caused an earlier investigation to significantly understate the true amount of back wages owed to workers.

The case has also produced guilty pleas from other defendants. On April 23, 2026, Shahriar “Sean” Loloee, 55, of Granite Bay, pleaded guilty to conspiracy to obstruct a Department of Labor investigation, conspiracy to defraud the IRS, three counts of filing false tax returns, one count of wire fraud, and one count of money laundering.

On Aug. 18, 2026, co-defendants Mirwais Shams and Ahmad Shams pleaded guilty to filing false tax returns. Sentencing for those three defendants is set for Nov. 19, 2026, while Montoya’s final sentence will be determined by the court after considering statutory factors and federal Sentencing Guidelines.

In our earlier coverage of a Malaysian Court of Appeal ruling on commission-partner liability, we explained that the court found a lawyer listed as a commission-based partner could still be treated as a partner under the Partnership Act 1961 and held responsible for an unpaid property-sale balance. We also noted the decision overturned lower-court findings and signaled broader implications for how professional firms and their partners may be exposed to debt and wrongdoing claims.

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