Viva Supermarkets manager found guilty of immigration document fraud, obstruction of 2 federal labor investigations and conspiracy

SACRAMENTO, Calif. - Following an 11-day trial, a federal jury today returned a guilty verdict against Karla Montoya, 45, of Sacramento, the general manager of the Sacramento-area grocery chain Viva Supermarkets, for her role in a long-running scheme involving the hiring of undocumented workers, the use of false immigration documents, and obstruction of two U.S. Department of Labor proceedings, U.S. Attorney Eric Grant announced.

"Today's verdict makes clear that employers who rely on false immigration documents, exploit their workers, and obstruct federal oversight will be held to account," said U.S. Attorney Grant. "Our Office will not tolerate employers who deliberately engage in unlawful hiring practices. No one is above the law, and we will continue to safeguard the integrity of federal labor investigations and the rights of workers in our community."

"This verdict sends a clear message that document fraud, labor exploitation and efforts to obstruct federal investigators are criminal acts and carry serious consequences," said HSI Northern California Special Agent in Charge Jeff Brannigan. "HSI Northern California has broad authority to investigate a wide array of criminal enterprises and we bring that authority to bear in combatting fraud and ensuring the integrity of the American economy."

"The jury's verdict against Ms. Montoya reflects the consequences of enriching yourself at the expense of workers through fraudulent and unlawful business practices," said IRS Criminal Investigation (IRS-CI) San Francisco Field Office Acting Special Agent in Charge David Lowe. "IRS-CI will continue working alongside our law enforcement partners to investigate and hold accountable those who seek unfair advantages over honest businesses by concealing wages, falsifying records, and obstructing investigators."

According to court documents and evidence presented at trial, Montoya worked closely with Viva Supermarkets owner and former Sacramento City Councilmember Sean Loloee to employ undocumented workers throughout the chain's Sacramento-area stores. Montoya knowingly accepted false Permanent Resident cards and Social Security cards as part of the hiring process for numerous employees, as well as her own false immigration documents. She also helped facilitate a system of off-the-books payments and irregular pay practices, including depriving workers of overtime pay.

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. As a result of this obstruction, the earlier investigation significantly understated the true amount of back wages owed to workers.

This case is the product of an investigation by IRS Criminal Investigation and Homeland Security Investigations. Assistant U.S. Attorneys Audrey B. Hemesath, Sam Stefanki, and Matthew Thuesen are prosecuting the case.

This case was investigated with the assistance of the Tax Recovery in the Underground Economy (TRUE)Links to other government and non-government sites will typically appear with the "external link" icon to indicate that you are leaving the Department of Justice website when you click the link. Task Force, which includes the California Department of Justice, the California Employment Development Department, the California Department of Tax and Fee Administration, the Franchise Tax Board, IRS CI and HSI. The TRUE Task Force was created to ensure multi-agency collaboration and to combat wage theft, tax evasion, and other crimes in the underground economy.

On April 23, 2026, Shahriar "Sean" Loloee, 55, of Granite Bay, pleaded guilty to one count of conspiracy to obstruct a Department of Labor investigation, one count of 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 the three has been set for Nov. 19, 2026.

Montoya is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on Jan. 7, 2027. Montoya faces a maximum statutory penalty of five years in prison and a fine of up to $250,000 for the count of conspiracy, up to 10 years in prison and a fine of up to $250,000 for each count of possession of false immigration documents and possession, acceptance and receipt of false immigration documents, and five years in prison and a fine of up to $250,000 for obstruction of agency proceeding. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the federal Sentencing Guidelines, which take into account a number of variables.