Former Sacramento City Councilmember Shahriar “Sean” Loloee is expected to formally switch his plea this week in a long-running federal case tied to his Viva Supermarket chain, according to recent court filings. A change-of-plea hearing is set for Thursday, April 23, at 9:30 a.m., a key moment in a saga that began with federal raids in October 2023. Loloee resigned from the council after he was indicted that year and has since faced ongoing allegations over labor and immigration practices at his stores.
As reported by The Sacramento Bee, a new filing asks that the case be placed on the court's April 23 criminal calendar and notes that U.S. District Judge Troy L. Nunley has set the hearing for 9:30 a.m. The filing indicates that details of any plea agreement are expected to be disclosed in Sacramento federal court on Thursday.
What prosecutors say happened
The criminal case stems from a 25-count indictment filed in December 2023. That indictment charges Loloee with conspiracy to defraud the Department of Labor, possession and use of false immigration documents, obstruction, falsifying records and wire fraud. The specific allegations and potential penalties are laid out by the U.S. Attorney's Office.
What investigators say they found
According to a federal court order filed in the case, agents who executed search warrants at multiple Viva Supermarket locations and several residential properties recovered documents and records that investigators say reveal a system for tracking fraudulent Social Security numbers and manipulating payroll and tax records. The filings describe how agents verified employee information, reviewed pay stubs and pursued electronic records as part of the investigation.
Other defendants in the case, including former Viva manager Karla Montoya and Mirwais and Ahmad Shams, are not part of the reported plea and remain in separate proceedings, with a September trial date still listed in court documents, according to The Sacramento Bee. The Bee also notes that Loloee continues to own a home at 1209 Nogales St. in Hagginwood and that he resigned from the council shortly after the 2023 indictment.
What is at stake
If Loloee is convicted on some of the charges, including wire fraud, he faces maximum statutory penalties that include up to 20 years in prison for each wire fraud count, along with varying maximums for other counts, according to the U.S. Attorney's Office. If he does enter a guilty plea Thursday, the specific charges he admits to, any sentencing recommendations and any cooperation terms would typically be spelled out in court and in related filings.
Thursday's hearing will offer the first public look at the contours of any agreement between Loloee and federal prosecutors and could bring months of litigation and document-heavy wrangling closer to a conclusion. Court observers will be watching to see which counts he pleads to, whether restitution is on the table and if prosecutors signal any openness to a reduced sentence in exchange for cooperation.
