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Sacramento City Councilmember Sean Loloee's Viva supermarkets raided by law enforcement

Sacramento city councilmember's supermarkets raided by law enforcement
Sacramento city councilmember's supermarkets raided by law enforcement 02:31

SACRAMENTO — A city councilmember in Sacramento is now the subject of a federal criminal investigation over how he is running his businesses.

Sean Loloee is already facing a federal lawsuit over forced labor allegations. Now, this raid shows the lawsuit isn't all he has to worry about.

Cell phone video shows federal agents inside one of Loloee's Viva Supermarkets. Homeland Security, IRS criminal investigators and California Department of Justice agents were all on the scene gathering evidence.

"There was officers at each of the registers, and they were taking the cash drawers out," Angela Grijalva said. "They were having boxes, putting stuff together."

Grijalva recorded the raid on her phone. The daughter of a labor organizer, she has followed the federal lawsuit against Loloee alleging forced labor at his businesses and threats to employees cooperating with investigators.

"I'm a critic of anyone who exploits our community," she said.

There have been several federal lawsuits over the years, with this raid marking a turning point.

"Now, all of a sudden you get criminal search warrants. Criminal search warrants, those are only issued when a magistrate has seen that there is probable cause of a crime being committed," said legal expert Mark Reichel.

Reichel said the raid is a sign of trouble for Loloee's legal team.

"How seriously does the federal government take this type of alleged crime?" CBS13's Steve Large asked Reichel.

"Well, actually, this is one of the most serious federal crimes there is and the sentence can be astronomical," Reichel responded.

No one answered the door at Loloee's home in his district or at his wife's home in Granite Bay. Last year, a city investigation cleared Loloee against allegations he was not residing in his own district.

The councilmember's office issued a statement in response to the federal raid, calling it a personal matter related to the Loloee's businesses and not connected to his work at city hall.

Now, the personal matter of this public leader is drawing scrutiny at city hall.

The Sacramento Central Labor Council is now asking Loloee to step down.

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