“This case is an example of state and federal investigators and prosecutors working together to ensure business owners and operators are abiding by the laws that protect consumers, employees and public programs.”
CSLEA President Alan Barcelona
SACRAMENTO— On April 23, 2026, Shahriar “Sean” Loloee, 55, of Granite Bay, pleaded guilty to three fraud schemes he perpetrated as the owner and operator of Viva Supermarket, a Sacramento-area supermarket chain.
According to the plea agreement, Loloee 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.
Obstruction of Department of Labor Investigation: On three occasions between 2008 and 2020, the U.S. Department of Labor investigated Viva Supermarket stores for labor practices. Loloee and other co-conspirators were aware that many of the supermarket staff did not have authorization to work legally in the United States. Loloee and others took steps to discourage employees from complying with the investigations, including by directing them to lie about aspects of their employment. Additionally, to avoid revealing the extent of the undocumented staff, and in an effort to reduce the amount of back wages Viva Supermarket owed those workers, Loloee provided an employee list to DOL, knowing that many of the hire dates on the list were falsified to a later date. He also gave false statements to DOL about the company’s history of paying employees off the books.
Defrauding the IRS: Loloee used irregular payment methods that allowed him to underreport both his federal payroll tax and his own personal income tax. He, together with his co-conspirators, maintained two sets of books—one that was used to submit filings to the IRS and one that was dubbed “Excess Payroll” and used internally to track hidden payments to undocumented workers and others including to himself. Over time, the form of theses hidden payments included cash and an in-house check system called “Green Checks” that were redeemable only at the Viva stores. By using the second set of books, Loloee and his co-conspirators caused a tax loss of approximately $200,000 to the IRS. Loloee also avoided an individual tax liability of approximately $32,103 by not reporting wages he paid himself.
Fraudulent SBA Loans and Money Laundering: In the aftermath of the COVID-19 pandemic, the Small Business Administration offered a relief program, the Restaurant Revitalization Fund. In May 2021 Loloee fraudulently applied for $2.2 million in COVID-19 relief from the Fund and received $1.2 million. After receiving the $1.2 million, Loloee initiated the laundering of funds with 10 checks all bearing the same issue date of June 18, 2021, and then moving the money through multiple accounts he controlled. Loloee completed the laundering with three bank transfers totaling $949,900 to a trust account in the name of one of his family members. Loloee’s purpose in undertaking this movement of money was to hide that the source of the funds was the pandemic relief fraud scheme he had executed.
This case is the product of an investigation by the IRS Criminal Investigation and Homeland Security Investigations.
This case was investigated with the assistance of the TRUE 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, the IRS Criminal Investigation 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.
Loloee is scheduled to be sentenced on Oct. 15, 2026. Loloee faces a maximum sentence of five years in prison and a fine of up to $250,000 for conspiracy to defraud the Department of Labor, to commit immigration document fraud, and to obstruct justice; 10 years in prison and a fine of up to $250,000 for conspiracy to defraud the IRS; three years in prison and a fine of up to $100,000 for a filing a false tax return; 20 years in prison and a fine of up to $250,000 for wire fraud; 20 years in prison and a fine of up to $500,000 for money laundering. 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.
