SACRAMENTO, Calif. \u2014 A Granite Bay grocery store owner and former Sacramento City Council member pleaded guilty to running multiple fraud schemes through his Viva Supermarket chain, the U.S. Attorney\u2019s Office said.<\/p>\n
Shahriar \u201cSean\u201d Loloee, 55, pleaded guilty Thursday to conspiracy to obstruct a Department of Labor investigation, conspiracy to defraud the IRS, three counts of filing false tax returns, wire fraud, and money laundering.<\/p>\n
Federal prosecutors said that between 2008 and 2020,\u00a0Loloee and co-conspirators sought to obstruct multiple Labor Department investigations by directing employees to provide false information and submitting records with altered hire dates to conceal undocumented labor and reduce back wages owed.<\/p>\n
Authorities also said Loloee maintained two sets of financial records to underreport payroll and personal income taxes. One set was provided to the IRS while a second, labeled \u201cExcess Payroll,\u201d tracked off-the-books payments made in cash and through a store-based \u201cGreen Checks\u201d system. Prosecutors said the scheme resulted in about $200,000 in tax losses and allowed Loloee to avoid roughly $32,000 in personal taxes.<\/p>\n
In 2021, Loloee fraudulently obtained $1.2 million in COVID-19 relief funds after applying for $2.2 million through the Small Business Administration\u2019s Restaurant Revitalization Fund. Prosecutors said he later moved the money through multiple accounts and into a family trust using a series of checks and transfers in an effort to conceal its origin.<\/p>\n
The investigation was conducted by IRS Criminal Investigation and Homeland Security Investigations, with assistance from the Tax Recovery in the Underground Economy Task Force, which includes multiple state and federal agencies.<\/p>\n
Loloee is scheduled to be sentenced on October 15 before U.S. District Judge Troy L. Nunley. He faces significant prison time and fines on each count.<\/p>\n
Three Sacramento residents are scheduled for trial on September 28, on related charges stemming from the same broader investigation into Viva Supermarket\u2019s alleged payroll and tax practices. Prosecutors allege the defendants worked in coordination with or alongside Loloee in aspects of the alleged schemes involving tax fraud and obstruction. Prosecutors said the allegations against them have not been proven and they are presumed innocent.<\/p>\n","protected":false},"excerpt":{"rendered":"SACRAMENTO, Calif. \u2014 A Granite Bay grocery store owner and former Sacramento City Council member pleaded guilty to…\n","protected":false},"author":2,"featured_media":286189,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[32],"tags":[3671,100,121,123,122,136],"class_list":["post-286188","post","type-post","status-publish","format-standard","has-post-thumbnail","category-sacramento","tag-covering-california","tag-news","tag-sacramento","tag-sacramento-headlines","tag-sacramento-news","tag-top-stories"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/286188","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/comments?post=286188"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/286188\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media\/286189"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media?parent=286188"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/categories?post=286188"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/tags?post=286188"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}