Lawsuit accuses PB Companies principals of fraud and deception

June 22, 2016
Oak Knoll Homes

Oak Knoll Homes

Editor’s Note: The lawsuit by Jonathan and Crystal Westbay against PB Companies, Alder Partners, Ryan Petetit and Russ Sheppell is at the bottom of this article.


PB Companies principals engaged in fraud and deception in order to lure a Nipomo man to invest in their companies and provide access to his property, a lawsuit filed last week alleges.

The suit, filed by Nipomo resident Jonathan Westbay and his sister, alleges that PB Companies principles John Belsher and Ryan Petetit deceived Westbay into investing money in a development project they never finished, failed to abide by an agreement to develop a property owned by Westbay, and damaged Westbay’s’ property.

“Throughout his tenancy on the property, Petetit punched and kicked several holes in the walls in the property and caused damage to several other areas as a result of numerous drunken tirades,” the lawsuit says.

Belsher, 62, and Petetit, 30, are involved in more than a dozen proposed projects that once completed, they say, will be worth more than $300 million.

Belsher and Petetit have secured money for their projects from banks, hard money lenders and private investors, according to county records. In some cases, investors have been promised rates of return between 20 to 50 percent, according to an email from Petetit to several potential investors. However, none of their projects have ever been completed.

John Belsher and Ryan Petetit

John Belsher and Ryan Petetit

In Dec. 2012, Belsher and Petetit asked Westbay to invest $25,000 in a 26-home proposed development in Templeton then known as Toad Creek; it has since been renamed Oak Knoll Homes.

In a promissory note Belsher emailed Westbay, Belsher claimed Westbay would get his principal and 20 percent interest returned within 90 days. However, PB Companies has yet to return Westbay’s investment into Toad Creek, the lawsuit alleges.

Additionally, several subcontractors who worked on the Toad Creek development said they have not been fully paid. Multiple lawsuits and mechanics liens have been filed against the developers for failure to pay contractor and investors as contracted, according to county and court documents.

Four people affiliated with PB Companies told CalCoastNews that San Luis Obispo County Supervisor Adam Hill works as a paid consultant for the development company. Hill identifies himself on a statement of information filed with the state as the “managing member” of San Luis Consulting, one of 33 limited liability corporations tied to PB Companies.

While attempting to woo Westbay, Petetit bragged that he was working with Hill, Westbay told CalCoastNews.

Adam Hill speaking at a groundbreaking ceremony for a PB Companies project.

Adam Hill speaking at a groundbreaking ceremony for a PB Companies project.

Nevertheless, Hill has repeatedly denied that he has worked for the developers, asserting on state financial reporting documents that he is paid to do writing and editing for a publishing company.

Westbay’s suit, filed by attorney Michael McMahon with the Paso Robles firm of Carmel & Naccasha, says Petetit approached Westbay in 2011 regarding plans to build a four-unit housing development in Arroyo Grande. Petetit asked Westbay to purchase a property with one home already built on it, and later Petetit promised to return $15,000 of $20,000 in closing costs. The remaining $5,000 would buy Westbay a 10 percent profit when the project was finished.

However, construction on the proposed three homes was never started, Westbay said.

In May 2015, Westbay signed a purchase agreement with Alder Partners, an LLC owned by Belsher, Petetit and PB Company investor Russ Sheppell. In the agreement, Belsher, Petetit and Sheppell agree to purchase Westbay’s Arroyo Grande property within 12 months, which they failed to accomplish, Westbay said.

Even though the developers failed to start construction on the additional three homes, Petetit asked to rent the existing home for his own residence, Westbay said.

Petetit, PB Companies and Sheppell, wrote checks to cover the rent, but $27,000 in checks bounced, the lawsuit says.

Multiple calls to Belsher and Petetit’s office went unanswered.

Westbay and his sister Crystal Westbay are asking the court to assist them in evicting PB Company employees and Petetit’s family from their Arroyo Grande property, return of their investments, payment for damages and court costs.

In the past few years, the Belsher and Petetit team has been accused of breach of contract, commingling investor funds, operating a Ponzi scheme and not compensating contractors. In addition, Petetit is currently facing five felony charges for reportedly choking a girlfriend and smashing her head through a window.

Following Petetit’s arrest, Belsher changed the name of PB Companies several times and announced a separation from Petetit. However, both men continue to work out of the same office.

Jonathan Westbay, who at one time considered Petetit a friend, said there are many people involved with Petetit and Belsher who were never paid for their services or investments.

“I know there are many people who have been physically or financially abused by these tyrants,” Westbay said. “I know that you might feel afraid to speak up or that your voice may not be heard. My answer to you is that you do have a voice and you do deserve to be heard. Only you can make a difference.”

Jonathan Westbay Complaint (FILED) by CalCoastNews


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Adam Hill, it has been wonderful entertainment watching you. It will be very fulfilling to see you, Pettit, Belsher, Aaron Ochs and James Wagstaffe go to jail for all the crimes you all have committed against the people of SLO. It is time someone creates a Face Book page and website illustrating Kerr Wagstaffe’s involvement with Adam Hill.

Jim Anderson

That my friend is in the works. James Wagstaffe with Kerr Wagstaffe is a common crook. His attempt to help Adam Hill take CCN out will cost him his internet reputation. He was supposed to be a defender of free speech, but instead is on the take with Team Adam Hill. Wagstaffe, you are mine.


Great idea! We will cut another video for Aaron Wynn featuring the fact that Wagstaffe is defending this pathetic polluter, Tenborg, for Adam Hill. Charles Tenborg, James Wagstaffe and Adam Hill, you are all sick puppies and this will be fun!


Lets not forget Bob Cuddy, Tom folks and Doe’s 1-8.






Ha! What crimes has “Aaron Ochs” committed against the people of SLO? Although I’m sure he would drool at the prospect of sharing a jail cell with the rest of them, I didn’t know being an effeminate hill troll was illegal? LOL


No I suppose having no visible means of support or a job, perhaps on the public dime is not a crime.

Claiming to have read someones medical records then blogging about a fictional diagnosis is not a crime, but is wholly unethical and a lie.

Claiming Velie is blackmailing Sam Blakesly is not a crime, but is wholly unethical and a lie.

Leading a campaign to harass the advertisers of CCN in order to shut the site down is not a crime but is wholly unethical when you pretend to be a bunch of other people.

Playing a part in a active political campaign including actively attempting to spin the bad news about Adam Hill is not a crime as long as no money is changing hands.

I could go on but I have a life and a job, also not a crime.

what the

Constant harassment, stalking and conspiracy are all crimes. Watch.


I have a question.

Ya know, if you search Bizapedia for “3480 S HIGUERA ST STE 130 SAN LUIS OBISPO,” you get this result:

“There are 30 companies that have an address matching 3480 S Higuera St Ste 130 San Luis Obispo, CA 93401.”

… and, along with Belsher’s 27 companies, where he is the “registered agent,” we also find one for “San Luis Consulting,” with a “registered agent” of “Adam Hill.”

So, here’s my question:

How common is it to have 30 friggin’ companies jammed into ONE suite? I mean, is that a common thing in business?

Maybe it is, but, good lord, how does Adam get any “consulting” work done in Ste 130 when there are 29 other LLC’s in the exact same suite? Is there even room for his desk?

Oh, and as for the “registered agent” for the other 2 LLCs at 3480 S Higuera St Ste 130 — filed just three months ago (“March 3, 2016”) — well, let’s just say that you can have some Google fun with this search: “Roy Ogden” “Adam Hill”


Good news. I was able to answer my own question — the question of: How does Adam even fit a desk into Suite 130, when there are “There are 30 companies that have an address matching 3480 S Higuera St Ste 130 San Luis Obispo?”

Welp, according to good ol’ Bizapedia, at this link:

… “San Luis Consulting, LLC is a California Domestic Limited-Liability Company filed on July 10, 2014… The Registered Agent on file for this company is Adam Hill and is located at 165 Country Club Dr, San Luis Obispo, CA 93401. The company’s principal address is 3480 S Higuera St Ste 130, San Luis Obispo, CA 93401 and its mailing address is 3480 S Higuera St Ste 130, San Luis Obispo, CA 93401.

The company has 1 principal on record. The principal is Adam Hill from San Luis Obispo CA.”

Got it. Makes perfect sense: No room for a San Luis Consulting desk in Ste. 130, where you can’t even hear yourself think among all the other LLCs with “P”s and “B”s in their names [including “PB&S, LLC” and “PB&S, LLC II”]? Problem solved: Time for a home biz.

Good idea.

By the way, you can “write a review” for San Luis Consulting at the link above.

Right now, “There are no reviews yet for this company.”

I’d love to see one. I’m curious to see who he “consults” for.


Multiple LLC’s are not uncommon. I worked for a group of 9 LLC’s (legit) basically owned by the same three guys. Each LLC had differing ownership percentages or it was one of a couple where one of the three guys had no interest because he had not yet joined at the time of purchase. Those of us working for more than one LLC had to track their time and turn it in with their time card for fair billing between the LLC’s. All of the LLC’s are run out of the same small office with one receptionist, a couple of accounting people, an office manager, and the principles. The old joke is that every time some rich guys go out for lunch and a couple drinks there’s a new LLC.

Jorge Estrada

I will soon have to stop reading the news because, like this article, to often it’s about adults crapping their pants and thinking nothing of it. There has got to be a named fetish for people who enjoy reading this stuff. I’d call this “social porn,’ sadly a new story about the same stuff year after year.

what the

What the…? Jorge, this is not for your entertainment. It is to expose these crooks who work with Adam Hill to the society who is being taken advantage of. You sound like you may be spending too much time alone.

Jorge Estrada

Good point, just tired.

what the

You rock Jorge.


I am so surprised and/or disappointed with John Belsher. He used to be a nice guy, so either he is the best fraud there is or he drunk someone’s kool aide.

John, you should be ashamed of yourself for the company you keep, the businesses you have cheated and the people you have screwed. Never thought this of you! May you pay for your wrongdoings and make right for the people you have cheated.

I want to know how the local governments can continue to allow this evil people to continue to get permits, damage land, buildings, abuse permits, etc. SLO, what has happened to that house in SLO that you waived all the fines against. Just because John legally represented the City General Unit employees does not make him a “City Privileged Employee” or does it?


Do you go to City Council meetings?

the situation

Since P and B are so good about paying off people, maybe they can pay off the Prison Warden to make sure they get a cell with Adam Hill. Those guys won’t last long in jail so they’ll definitely need it.


I would not want to be Belscher’s accountant…what a mess he must have! So many LLC’s, he probably can’t keep them all straight!


Belcher (my sic) and Petetit must have employed former general manager of Los Osos Community Services District (LOCSD) – the notorious Ms. Kivley – to help out with their accounting. She’s a proven expert at number crunching and has the gift of making the books say whatever PB prefers! Per Kivley’s Facebook page, she’s still the LOCSD general manager – October 2013 to present. What’s with that?

Josey Wales

Dump Adam Hill!


Better yet … JAIL Adam Hill !!!


While I hope the Westbay’s can recover *something* (which may no longer be there), I have to ask: Did you do ANY homework AT ALL, Jonathan? I mean, did you inherit your money or something? Such a “new money” move to invest with these charlatans. What was PB Company’s prior track record of success when you decided to get in bed with them?

Did the greed of a 10-20% return blind your logic?


Kelly Gearhart redux.


I was thinking the same thing. Our county sure gets it’s share of charlatans.

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