Judged:
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Prosecutors say the nine people conspired to launder hundreds of thousands of dollars, conceal campaign contributions and offer bribes as part of a scheme to advance their political agendas.
"These elected officials were entrusted with power and misused that power to advance their own political ambition and to satisfy their greed," Riverside County District Attorney Rod Pacheco said.
Those indicted are San Jacinto Mayor Dale Stubblefield, 41; Vice Mayor John Mansperger, 41; Councilman James Potts, 67; and Councilman Jim Ayres, 48.
In addition, Ayres' wife, Nancy Jo Ayres, 44, an elected San Jacinto Unified School District board member, is among those named in the indictment as are developers and businessmen Stephen Russell Holgate, 62, of San Jacinto; Scott Douglas Shaull, 45, of Roseville; Robert Edward Osborne, 69, of Mission Viejo; and Byron Jerry Ellison, Sr., 70, of San Jacinto.
The 155-count indictment includes 56 felonies and 99 misdemeanors including money laundering, tax fraud, bribery, perjury and filing false government documents.
The officials are accused of a complex scheme of kickbacks to campaign contributors or outright deception on campaign forms.
For instance, Holgate and Osborne are accused of conspiring with Jim and Nancy Ayres and the other council members to hide the fact that Holgate and Osborne were the true source of campaign contributions.
The contribution limit during the 2006 Assembly primary was $3,300. The law also allowed donors to give another $3,300 in the general election for a total of $6,600.
Holgate appeared on election contribution reporting forms as legitimately giving that amount.
"However, that would be disguising the hundreds of thousands of dollars that were laundered to other people in that same campaign," Pacheco said
At least a dozen of those contributors or supposed contributors were interviewed by the grand jury, according to a list of witnesses included in the indictment.
Both Ayres and his wife are accused, in addition to the multiple campaign improprieties, of receiving $109,950 from Holgate and possibly Shaull, both of whom are developers.
Jim Ayres and Holgate are both charged with bribery for interactions between Nov. 30, 2005 and Nov. 30, 2007.
The charge does not specify how the bribery allegedly occurred, but another count in the indictment alleges that Jim Ayres unlawfully used his council status in purchasing land where a home was later built.
Pacheco said he could not provide additional details until the grand jury's investigation is unsealed.
There is no such thing as an honest politician and there never has been. This is just a fact of life.
Ayres was an unsuccessful candidate for the 2006 GOP primary for the 65th Assembly District. It was a four-way slugfest that pitted local officials from four cities.
In the end, the three candidates from Riverside County -- Ayres, Hemet Councilwoman Robin Lowe and then-Banning Councilwoman Brenda Salas -- split the county vote.
Yucca Valley Mayor Paul Cook, the only San Bernardino County candidate in the race, emerged the winner and continues to serve in the Assembly.
In a separate case, Mark Leggio, a major donor to Salas, was charged with money laundering and working to skirt contribution limits involving the race. He pleaded guilty in April to one felony charge and 26 misdemeanor counts. The felony was later reduced to a misdemeanor.
"It's the fated election, if you will, of the 65th Assembly District," Pacheco said. "Money laundering in one campaign, and massive money laundering in another."





