Immigration fraud charges against a Sacramento-area grocery manager ended in a federal conviction after jurors found Karla Montoya guilty of using false immigration documents, obstructing two Department of Labor investigations and participating in a conspiracy.
Table of Contents
Immigration Fraud Update
USCIS announced the immigration fraud conviction on October 22, 2026, after receiving assistance from the agency helped produce the case against Montoya, the general manager of the Viva Supermarkets chain.
The U.S. Attorney’s Office for the Eastern District of California separately announced that the guilty verdict followed an 11-day federal trial that concluded on October 14, 2026.
What the federal jury found
Montoya, 45, of Sacramento, was convicted for her role in a long-running immigration fraud scheme involving the employment of workers who lacked authorization to work in the United States, the use of fraudulent immigration documents and interference with federal labor investigations.
According to evidence presented at trial, Montoya worked with Viva Supermarkets owner Shahriar “Sean” Loloee to hire workers at stores in the Sacramento area.
Prosecutors said Montoya knowingly accepted counterfeit Permanent Resident cards and Social Security cards during the hiring process for multiple employees.
The evidence also showed that Montoya used false immigration documents herself, according to the government’s account of the trial.
That conduct formed part of the immigration fraud case presented to the jury.
The case involved more than employment eligibility paperwork.
Federal prosecutors said Montoya helped operate a system involving off-the-books payments and irregular payroll practices that included denying workers overtime compensation.
Because Montoya was a general manager, the case focused on her alleged role in hiring, workplace administration and the handling of information provided to federal investigators.
Labor investigations were central to the case
The conviction also covered obstruction of two investigations by the Department of Labor’s Wage and Hour Division.
The immigration fraud charges were prosecuted alongside those labor-investigation allegations.
According to court evidence, Montoya and Loloee hid employees who were likely to provide unfavorable information and interfered with investigators while the inquiries were taking place.
The government said the earlier labor investigation significantly understated the amount of back wages owed to workers because investigators did not receive a complete picture of the company’s workforce and pay practices.
The allegations originally filed in the case included claims that workers were directed to avoid investigators or provide misleading information about their employment.
Those earlier allegations must be distinguished from the final result against Montoya, who was convicted after trial on the charges presented to the jury.
The labor component means the immigration fraud case concerns both immigration-related document offenses and the integrity of federal wage investigations.
Possible penalties for Montoya
Montoya is scheduled to be sentenced by U.S. District Judge Troy L.
Nunley on January 7, 2027.
She faces a maximum statutory penalty of five years in prison and a fine of up to $250,000 on the conspiracy count.
Each count involving possession of false immigration documents or possession, acceptance and receipt of false immigration documents carries a potential maximum sentence of up to 10 years in prison and a fine of up to $250,000.
The immigration fraud counts therefore carry different potential penalties from the obstruction count.
The obstruction count carries a potential maximum penalty of five years in prison and a fine of up to $250,000.
Those are statutory maximums, not a prediction of the sentence Montoya will receive.
The judge will determine the final sentence after considering applicable sentencing factors and the federal Sentencing Guidelines.
The number of counts on which Montoya will be sentenced, the guideline calculation and other case-specific factors can affect the final punishment.
Related guilty pleas in the Viva Supermarkets case
Montoya’s conviction is part of a broader federal prosecution involving the supermarket chain’s ownership and financial operations, with the immigration fraud case representing one part of that prosecution.
Loloee, 55, of Granite Bay, pleaded guilty on April 23, 2026, to conspiracy to obstruct a Department of Labor investigation, conspiracy to defraud the Internal Revenue Service, three counts of filing false tax returns, wire fraud and money laundering.
Two other defendants, Mirwais Shams and Ahmad Shams, pleaded guilty on August 18, 2026, to filing false tax returns.
Sentencing for Loloee and the two Shams defendants is scheduled for November 19, 2026.
The Justice Department said the case was investigated by IRS Criminal Investigation and Homeland Security Investigations, with assistance from the Tax Recovery in the Underground Economy Task Force.
The task force includes federal and California agencies working on cases involving wage theft, tax evasion and other crimes connected to underground business activity.
What the case means for employers and workers
The conviction underscores that employers can face separate federal consequences for immigration fraud, false employment documents, unlawful payroll practices and interference with labor investigators.
Employers must complete Form I-9 requirements for newly hired workers and must not knowingly accept fraudulent documents or participate in schemes designed to conceal unauthorized employment.
Employers also must maintain accurate payroll and time records and comply with federal wage-and-hour requirements, including overtime rules when applicable.
Interfering with a Department of Labor investigation can create additional criminal exposure beyond the underlying wage dispute.
Workers who believe they were denied overtime, paid off the books or prevented from speaking with investigators may have options through the Department of Labor or state labor authorities.
Workers should preserve pay records, schedules, text messages, timekeeping information and other documents that may help establish hours worked or wages paid.
Immigration status can make workers vulnerable to exploitation, but federal wage protections generally apply based on the work performed and the requirements of applicable law.
How to report suspected immigration document fraud
USCIS directs the public to use its online Tip Form to report suspected immigration fraud involving benefit fraud or abuse.
A report should provide specific information when available, including the names of the people or businesses involved, dates, locations, documents, hiring practices and other facts that can be independently checked.
People should avoid submitting knowingly false information and should not place themselves at risk to collect evidence.
Workers seeking advice about unpaid wages or retaliation may also consider contacting the Department of Labor, a state labor agency or a qualified attorney.
The USCIS announcement does not state that every worker connected to Viva Supermarkets committed immigration fraud or that every document used in the business was fraudulent.
The criminal conviction applies to Montoya based on the conduct and counts decided by the federal jury.
Next date in the case
The next major proceeding involving Montoya is her federal sentencing hearing on January 7, 2027.
Until the court imposes a sentence, the listed prison terms remain potential statutory penalties rather than an imposed punishment.
Frequently Asked Questions
Who was convicted in the Viva Supermarkets case?
Karla Montoya, 45, the general manager of the Sacramento-area Viva Supermarkets chain, was convicted after a federal trial.
What charges did Karla Montoya face?
The case involved conspiracy, possession and acceptance of false immigration documents, and obstruction of two Department of Labor proceedings.
When will Montoya be sentenced?
Montoya is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on January 7, 2027.
What penalties could Montoya face?
The statutory maximums include up to five years in prison for conspiracy, up to 10 years for each applicable false-document count and up to five years for obstruction, along with possible fines.
How can suspected immigration fraud be reported to USCIS?
USCIS says suspected immigration benefit fraud or abuse can be reported through its online Tip Form.
Fact-Checked: Key case details were checked against the USCIS announcement dated October 22, 2026, and the Eastern District of California Justice Department verdict release dated October 14, 2026.
Disclaimer: This article provides general news information and is not legal advice.
New Minimum Wage In Canada and 5 Provinces, Effective April 1
