Former Raley’s Worker Pleads Guilty to Fraud

SACRAMENTO, Calif. — A former advertising director for Raley’s [3] pleaded guilty to charges that he defrauded the company of more than $2.5 million.

David John Magana, who worked for Raley’s through September 2010, was charged in a scheme to demand phony commissions from paper and graphics companies that wanted to do business with the retailer, then arranged to have the commissions paid back by Raley’s.

Magana and unnamed co-conspirators also sold large quantities of paper purchased by Raley’s, according to federal investigators, who said their investigation was ongoing.

Magana is scheduled to be sentenced on June 4. He faces a maximum prison term of 20 years for mail fraud and 20 years for a separate charge of money laundering and fines of up to $750,000.

Suggested Categories More from Supermarketnews
[14]