A former Raley’s advertising director pleaded guilty on charges leveled against him of defrauding the company. The former Raley’s worker is accused of defrauding the chain of supermarkets for over $2.5 million.
The ex-advertising director of the chain, 46-year old David John Magana, worked for the supermarket chain until September 2010. He is charged with engaging in a scheme that demanded fake commissions from graphics and paper companies that were doing business with Raley’s. He then arranged for the phony commissions to be paid back by the supermarket chain.
Based on information obtained by federal investigators, Magana and another unnamed co-conspirator are also accused of having sold large amounts of paper bought by the chain of supermarkets and sold at discounted rates.
The federal investigators have said that further investigation into the scheme is still ongoing.
David John Magana will be facing the sentencing on 4th June. According to the law, Magana will be facing a prison term of a maximum of 20 years for the charges of mail and wire fraud. He also faces 20 years and fines with a maximum limit of $750,000 for separate charges of money laundering. The case against Magana was heard in Sacramento, California.
Herbert M. Brown, the FBI Special Agent of the Sacramento Division criticized Magana’s conduct as unacceptable. Court documents indicated that the commission was paid to the co-conspirator who later paid a kickback to Magana, using two shell companies to launder the money.
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