Embattled Sacramento councilman faces new investigation by state politics agency
California’s political watchdog agency is investigating whether a Sacramento city councilman is violating state law by failing to report rental income from a property he owns.
The California Fair Political Practices Commission launched an investigation into Councilman Sean Loloee after receiving a complaint that alleged he did not report income on a so-called Form 700, which is an income-disclosure document required of elected officials and certain government officials.
The agency received the complaint in June, four days after The Sacramento Bee reported Loloee does not appear to live in the home where he is registered to vote.
A man at the Nogales Street property on June 14 told The Sacramento Bee he rented the house from Loloee. At the time, Loloee told The Bee that the man had rented the house during a roughly four-month period at the end of 2021.
On Wednesday Loloee said the house is not a rental property. Loloee says he lives at the home.
“I don’t think it’s going to move that much forward,” Loloee said Wednesday of the FPPC investigation. “They had question about my Form 700 and why I don’t have rental on that and then I sent them the documents showing that’s my primary residence, not a rental property.”
Loloee bought the house on Nogales Street in the Hagginwood neighborhood in 2019 shortly before filing paperwork to run for council. Loloee’s family also owns a home in Granite Bay.
“Nogales is where I reside,” Loloee said. “It is my primary residence. And all the paperwork points to that.”
Another family at councilman’s home
When the coronavirus pandemic struck, he let friends stay with him at the Sacramento house, he said in early July.
Karla Montoya, general manager for Loloee’s grocery stores, has said Loloee allowed her and her family live in the house with him. Loloee declined to say Wednesday whether the Montoya family is still living at the house or whether they pay rent.
“Whether they are or not its not any of your business,” Loloee said. “That’s all I’m going to tell you.”
If the commission determines Loloee committed a violation of the Political Reform Act, it could issue a penalty of up to $5,000 per violation, said Jay Wierenga, spokesman for the agency. If the commission uncovers a violation, it will seek a settlement, based in part on intent and harm to the public.
Sacramento investigation into councilman
The home is in Loloee’s City Council district, one of eight in Sacramento. He is required by law to live in the district he represents.
Loloee also is facing an investigation into his residence from a legal firm appointed by the city of Sacramento. The city did not share a timeline Wednesday for when that will be completed or share the name of the firm.
The council can remove Loloee from office if it determines he does not live in the district.
Separately, the federal government has filed a federal lawsuit against Loloee and his companies alleging he threatened to deport employees who talked to federal investigators, among other claims uncovered during a decade-long investigation. Loloee’s attorneys last week asked Senior U.S. District Judge William B. Shubb to remove Karla Montoya as a defendant from that case. Shubb rejected that request.
The city last month issued code violations to Loloee for sheds built on his property without the proper permits. Loloee said Wednesday he does not plan to get permits for the sheds or remove them. The code case remains open and unresolved.
This story was originally published August 11, 2022 at 12:26 PM.
