Filing ties San Luis Obispo attorney to bribery scheme

November 3, 2024

Editor’s note: CalCoastNews is referring to developer Ryan Petetit, who changed his name to Ryan Wright during the case, as Ryan Petetit-Wright.

By KAREN VELIE

In response to San Luis Obispo developer Ryan Petetit-Wright’s plea for a 51-month prison sentence, prosecutors describe the damage the conspiracy wreaked on the community and attorney John Belsher’s part in the bribery scheme. Belsher has not been charged for his alleged participation in local corruption.

Last month, Petetit-Wright admitted conspiring with former San Luis Obispo County Supervisor Adam Hill and John Belsher to deprive local citizens of honest services through a pay-to-play scheme. Petetit-Wright pleaded guilty to one criminal count: conspiracy.

In a filing regarding the sentencing of Petetit-Wright, prosecutors describe the damage corruption does to a community.

“Defendant’s bribery here was not just a one-off payment, a singular mistake, or bad choice,” according to prosecutors. “Instead, it was purposeful, planned, and an intentional effort to fix the system, thereby undermining the integrity of the City of San Luis Obispo and San Luis Obispo County’s processes just to line his pockets. But like all corruption-related offenses, defendant’s crime not only undermined the integrity of the governmental processes at play, it also undermined the public’s trust in their elected officials and the institutions they serve.”

Prosecutors describe the bribery scheme

Petetit-Wright, Belsher and Hill began their bribery conspiracy in the summer of 2014, at a time their projects needed governmental approvals from the city and the county. In an attempt to conceal their bribery scheme, Belsher suggested forming San Luis Consulting LLC to protect the three of them.

Belsher thought a self-imposed gag order was a good idea, as Petetit-Wright warned, “Loose lips sink ships.” For his part, Hill agreed with the concealment since it meant he could hide the bribes he received.

Holding up his part of the deal, in July 2014, Hill spoke at San Luis Obispo’s Architectural Review Commission meeting promoting a PB Companies project, later dubbed San Luis Square.

In response to concerns voiced by a neighborhood group objecting to the height and design of the project, Hill said, “We don’t want to stifle projects by chopping off floors . . . .” During the meeting, Hill did not disclose his financial arrangement with PB Companies, Belsher and Petetit.

Later that day, Hill forwarded an email to Petetit-Wright from one of the commissioners who commented favorably on the project. The commissioner wrote, it was “nice to see you in the room tonight. . . that project has great promise.” Hill added, “Just so you see the value of my help….(Don’t pass on).”

Petetit-Wright saw the value of Hill’s help and gave him $2,500 — the first of many payments affiliated with their bribery agreement. In the end, Petetit-Wright arranged for $94,234 in bribes to be paid to Hill.

In addition, Petetit-Wright provided a number of non-cash bribes to Hill including, $1,867  in a ride in the developers’ semi-private jet, hotel stays, and a front-row ticket to watch his favorite baseball team play in the National League Championship Series in San Francisco.

Shortly after returning from his San Francisco trip and garnering a cash bribe of $4,950, on Dec. 16, 2014, Hill voted in support of the developers’ Toad Creek Homes project in Templeton. Within two weeks, Petetit-Wright arranged nearly $13,000 in bribery payments.

Petetit-Wright continued to pay Hill to obtain approvals of city projects, including San Luis Square. For example, he told a San Luis Square investor that they were arranging for $25,000 to Hill’s reelection campaign because if “we loose [sic] him it’s bad for us Down town.”

Hill helped make sure that the San Luis Square project progressed through the city approval process without any unnecessary roadblocks, including any recommendation that PB Companies reduce the project’s height. Hill “worked behind the scenes” with city officials and “pushed” then-Community Development Director Derek Johnson to support the San Luis Square project at a key joint meeting of city commissioners in July 2015.

Hill took “the lead” during the meeting, voicing strong support for the project. But that was not enough for the developers; they wanted Hill to publicly address the meeting, which Hill initially declined to do. Petetit-Wright did not take no for an answer and instead told Hill that Belsher had been counting on him speaking during the meeting.

Hill relented and then vigorously delivered for the developers at the meeting. After the meeting, Petetit-Wright asked if Hill “drugged these people.”

Hill later told Belsher he “spoke with everyone I needed to and it worked.” Hill added that a commissioner told him his comments made the difference at the meeting. Hill was rewarded for his work with a $25,000 payment in Aug. 2015.

In July 2015, CalCoastNews exclusively reported PB Companies was paying Hill to promote their projects. Over the next year, CalCoastnews published multiple articles about the illicit relationship while the Tribune wrote articles alleging CalCoastNews reporters were harassing Hill and his family.

For a time, the exchanges between the developers and Hill cooled.

Then, in Aug. 2016, Petetit-Wright reached back out to Hill and let him know that the final map for their project in Templeton needed approval. Over the next couple weeks, Petetit-Wright told Hill he would get him a $10,000 donation to his campaign from his “buddy’s wife” and that he was working on “funneling money.”

Hill then voted in favor of the final map for the developers project in Templeton. A month later, Petetit-Wright wired $10,000 to Hill.

Believing the bribery conspiracy was still alive and well, Belsher reached out to Hill in late May 2017 after the San Luis Square project received negative feedback from a commissioner. Hill responded to Belsher that “he was out of the help business.”

Petetit-Wright again seeks to expedite his sentencing

Facing a sentence of 51 to 63 months in prison, Petetit-Wright is requesting 51 months while prosecutors are seeking 61 months.

After the court agreed to fast-track his sentencing to Nov. 25, Petetit-Wright again requested and received an expedited hearing. His sentencing is now scheduled for Nov. 12.

“Because economic and fraud-based crimes are more rational, cool, and calculated than sudden crimes of passion or opportunity, these crimes are prime candidates for general deterrence,” according to the court filing. “Defendants in white collar crimes often calculate the financial gain and risk of loss, and white collar crime therefore can be affected and reduced with serious punishment.”

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