A former employee of Sacramento Councilmember Sean Loloee was found guilty on Wednesday of conspiracy, possession of false immigration documents, obstruction and other charges brought by federal prosecutors in a case that ended Loloee’s political career.
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Karla Montoya, the former general manager of Viva Supermarkets, which Loloee owns, is set to be sentenced by U.S. District Judge Troy L. Nunley on Jan. 7. Loloee and two other defendants will be sentenced Nov. 19, according to a news release from the U.S. Attorney’s Office.
“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,” U.S. Attorney Eric Grant said in a news release. “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.”
Montoya through her attorney Jai Gohel, declined comment on the verdict.
In addition to the guilty verdict for possessing fraudulent immigration documents, the jury after an 11-day trial, found Montoya, 45, guilty of obstructing two federal Department of Labor investigations at the stores, and conspiracy to defraud the United States, according to the release.
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“Montoya worked closely with (Loloee) to employ undocumented workers throughout the chain’s Sacramento‑area stores,” the release said. “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.”
Loloee pleaded guilty in April to obstructing U.S. Department of Labor investigations, underreporting taxes tied to off-the-books pay, and fraudulently obtaining nearly $1.2 million in COVID-19 relief funds. At his Nov. 19 sentencing he faces up to 59 years in prison. Elected in 2020 to represent North Sacramento on the Sacramento City Council, Loloee resigned from office in January 2024.
Montoya at her Jan. 7 sentencing faces up to 20 years in prison. Prosecutors said she will remain incarcerated until her sentencing.
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This story was originally published October 14, 2026 at 6:24 PM.
