Former Raley’s Executive Gets Nearly 4 Years For $3M Kickback Scheme
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WEST SACRAMENTO, Calif. (AP) – A former Northern California supermarket chain executive has been sentenced to three years and 11 months in prison in connection with a kickback scheme that cost the supermarket chain more than $3 million.
Federal prosecutors say David John Magana, former advertising director for West Sacramento-based Raley’s, was also ordered on Tuesday to pay $2.9 million in restitution.
Authorities say in one scheme, Magana had paper and printing companies that provided services to Raley’s pay commissions to a co-conspirator, who then kicked money back to him. He allegedly hid the commissions by listing them as additional charges on invoices from the companies. Those invoices were paid by Raley’s.
Magana pleaded guilty in February to conspiring to commit mail and wire fraud and money laundering. The two other defendants in the case have also been sentenced.
Copyright 2014 The Associated Press.