Crime - Sacto 911

January 28, 2014

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

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.

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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.

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