Story Date: December 6, 2010

http://www.inlandnewstoday.com/story.php?s=17120

RIVERSIDE - San Jacinto’s city council corruption has spawned a money laundering scheme involving real estate developer Stephen Holgate.

A Grand Jury indictment just unsealed accuses Holgate of reimbursing several people for their contributions to the “Friends of John Benoit” state Senate campaign in 2008. Benoit won that election, but quit a year later to become a Riverside County supervisor.

Holgate, who lives in Florida, has denied the 10 charges, but could face up to 3-years in prison if convicted.

Commenting on the fraud scheme Monday, District Attorney Rod Pacheco said “Money laundering allows voters to be misled.” (INT)