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Former Raley’s executive sentenced to four years in kickback scheme

Published: Tuesday, Jan. 28, 2014 - 11:45 am

David John Magana, former advertising director for Raley’s, was sentenced Tuesday in Sacramento federal court to almost four years in prison for his part in a fraud scheme that cost the West Sacramento-based supermarket chain nearly $3 million.

Magana, 47, pleaded guilty in February of last year to conspiring with two others to commit mail and wire fraud and money laundering. He admitted to devising a scheme under which printing and paper companies providing services to Raley’s paid unecessary commissions to a co-conspirator in the fraud. Magana disguised reimbursements to the companies for the commissions as additional charges on their invoices, Magana acknowledged. He confessed to receiving kickbacks from the co-conspiritor.

The paper was used to print Raley's advertising and an in-house publication.

Magana also admitted working with others to sell significant quantities of Raley's paper inventory to third parties at discounted rates.

Call The Bee’s Denny Walsh, (916) 321-1189.

Read more articles by Denny Walsh

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