SACRAMENTO, Calif. (CN) — Sacramento Mayor Darrell Steinberg on Thursday called for the resignation of Shahrir “Sean” Loloee, saying the council member is disqualified by a court order that prevents him from living in the city.
When a federal indictment was unsealed Dec. 15 accusing Loloee of conspiracy, obstruction, possessing false immigration documents and pandemic relief fraud, Steinberg said Loloee had a right to due process, as well as an obligation to do the right thing.
On Thursday, after saying he’d repeatedly asked Loloee in private to resign, Steinberg made his public comment.
“This morning, he informed me he would not resign,” the mayor said in a statement. “Today, I am publicly calling on Councilmember Loloee to resign immediately.”
Steinberg said the fraud and obstruction charges “are incompatible” with Loloee’s continued public service, while repeating that the council member has the right to due process of law.
The mayor pointed to U.S. Magistrate Deborah Barnes’ order that Loloee, as a condition of release, live at his Granite Bay home, and can’t be away from it for longer than a day without court approval. However, the city charter requires council members to live in their district — a qualification to hold office.
“Given the court directive that he remain in Granite Bay, I have asked the city attorney to immediately provide the city council with an opinion on whether Mr. Loloee remains legally qualified to hold office in the city of Sacramento,” Steinberg said.
A city spokesperson said it’s unknown when that determination will be made.
“Councilmember Loloee should put the city first,” Steinberg continued. “We have too much important work to do on behalf of the people of Sacramento for more distraction and controversy."
Loloee in a statement said he wasn’t resigning. He said he’ll finish his current term, “vehemently” denies the charges and looks forward to appearing in court.
“Politics is a rough business and lends itself to unfair and savage attacks,” Loloee said in his statement. “Unfortunately, those who opposed my campaign and disagreed with some of my views on how Sacramento can improve never stopped their attacks after the votes were tallied.
“Instead, their harassment and attacks turned more vicious, directed not only at me, but my family, my friends, and even Viva store associates,” he continued. “But the loss is not about me alone. Real people lose when the criminal justice system is wielded to meet political ends.”
The 53-year-old Loloee is accused of misstating his Viva Supermarkets’ revenue when applying for Covid-19 relief funds, of which he received about $1.2 million. He’s also accused, along with 42-year-old Karla Montoya, of obstructing proceedings and using fake immigration documents.
Both have pleaded not guilty.
Loloee is the owner of Viva Supermarkets and Montoya is his general manager. They’re accused of employing many people over 15 years who weren’t authorized to work in the country, enabling them to lower labor costs and avoid overtime pay.
The council member has faced investigations in the past, with the most recent beginning in 2020. Authorities said he and Montoya lied to investigators, listened in on an interview with an employee and told a worker to lie about their hire date. They told others to hide from investigators and avoid interviews.
Voters first elected Loloee to the Sacramento City Council in November 2020.
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