Manager Convicted in Sacramento Labor Fraud Case
A federal jury found Karla Montoya guilty of immigration document fraud and obstruction of a labor investigation.
Updated on Oct. 15, 2026 in Financial Crime
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Karla Montoya, the former general manager of Viva Supermarkets, was convicted by a federal jury for her role in an immigration document fraud and labor obstruction scheme. She deliberately hindered Department of Labor investigations to conceal unpaid overtime wages.
Why it matters
The conviction highlights a broader effort by federal authorities to crack down on businesses that use off-the-books payments and document fraud to systematically deprive workers of legal wages and protections.
Montoya faces a maximum prison sentence of 10 years for document fraud and 5 years for conspiracy, along with fines of up to $250,000 per count. Sentencing is scheduled for January 7, 2027.
The players
Karla Montoya
She is the 45-year-old former general manager of Viva Supermarkets who was convicted of immigration document fraud.
Sean Loloee
The 55-year-old Granite Bay resident and business owner pleaded guilty to conspiracy to obstruct a labor investigation.
U.S. Department of Labor Wage and Hour Division
This federal agency conducts investigations into employer compliance with labor laws and wage standards.
Mirwais Shams
He is a co-defendant who pleaded guilty to filing false tax returns in connection with the investigation.
Ahmad Shams
He is a co-defendant who pleaded guilty to filing false tax returns in connection with the investigation.
The details
Montoya accepted false Social Security and Permanent Resident cards for hiring and used fake immigration documents for herself. She actively obstructed Department of Labor officials by hiding employees during site visits to prevent the discovery of systemic overtime wage violations.
Timeline
April 23, 2026: Sean Loloee pleaded guilty to federal charges.
August 18, 2026: Mirwais and Ahmad Shams pleaded guilty to tax charges.
October 14, 2026: Jury returned guilty verdict against Karla Montoya.
November 19, 2026: Sentencing for Loloee and co-defendants scheduled.
January 7, 2027: Sentencing for Karla Montoya scheduled.
Legal Context
This case follows a pattern of federal enforcement actions taken to uphold the Fair Labor Standards Act's overtime requirements. Courts in the Eastern District of California have recently seen an increase in prosecutions involving corporate obstruction of labor audits.
This conviction underscores the risks local businesses face when attempting to bypass labor laws to gain a competitive edge. Residents should be aware that such investigations may lead to further regulatory oversight of local grocery chains operating in the Sacramento area.
The takeaway
The conviction of a general manager for document fraud serves as a reminder of the serious legal consequences for obstructing labor investigations. Business owners and management teams are expected to maintain full compliance with wage and immigration documentation requirements.
What happens next
Sentencing for Sean Loloee, Mirwais Shams, and Ahmad Shams is set for November 19, 2026, while Karla Montoya will be sentenced on January 7, 2027.
Further reading
Find more details on regional legal actions in our Financial Crime section.
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