Pressure is mounting for Sacramento City Councilman Sean Loloee to resign after federal authorities raided his businesses Oct. 26, resulting in their temporary closure for alleged labor law violations.
Agents with the Department of Homeland Security, the Internal Revenue Service (IRS), and the Department of Treasury participated in the early morning raids of three Viva supermarkets owned by the councilman and located throughout Sacramento County.
The actions follow a federal lawsuit filed in April 2022 alleging Mr. Loloee interfered with government investigations, violated child labor laws, and underpaid employees.
Union officials responded forcefully, suggesting the reputation of the council is at stake.
“The very foundation of our democracy is built on the principles of transparency, accountability, and the upholding of the law,” the Sacramento Central Labor Council—a local union representing more than 175,000 workers—wrote in a letter to Mr. Loloee Oct. 27. “As public servants, elected officials are entrusted with the responsibility to serve as examples of ethical conduct and integrity in their professional and personal lives.”
The letter demanded the councilman’s immediate resignation, noting that concerns had been raised by the union and federal authorities in the past, and that detailed complaints from workers revealed “shocking” allegations of labor law abuse.
“The allegations of labor violations and the federal raid on your supermarkets are not only deeply troubling, but they also undermine the trust that our community has placed in you,” the union wrote. “We implore you to act in the best interest of the people of Sacramento and step down from your position as councilmember immediately.”
Mr. Loloee—who was elected in November 2020—did not respond to requests for comment, and his office directed all questions pertaining to the matter to Viva supermarkets, with no responses received from the grocery stores. All three locations were re-opened for business Oct. 30.
The councilman has been reportedly investigated for withholding pay on prior occasions, with federal investigations occurring three times since 2009. Additionally, a Department of Labor lawsuit was filed against him in April. Complainants allege he is failing to uphold terms of negotiations to remedy past actions, that violations are ongoing, and that he is coercing employees. Several lawsuits have been filed against him over the past five years by employees alleging labor law violations, including underpayment.
It is unclear if the raids are a result of such investigations or arose from new evidence.
A spokesperson for the IRS confirmed the joint action with federal agencies and told The Epoch Times that no further comment could be made, as the details concern an ongoing investigation.
