Two local men were at the heart of a stunning political corruption scheme in Southern California, law enforcement officials claim in recently released court documents.

The Riverside District Attorney’s Office says Scott Douglas Shaull, of Roseville, and Stephen Russell Holgate, until recently of Granite Bay, were key players in the scandal, which snared key city leaders in San Jacinto.

Last week, the county’s grand jury indicted four San Jacinto city councilmen, a school board member, and four developers – including Shaull and Holgate – for bribery, money laundering, conspiracy and tax evasion, among other allegations.

Shaull, 45, was arrested Nov. 11 at his Olympus Point home in Roseville, according to city jail records.

Records on file with the county clerk show Holgate, a land developer, lived in Granite Bay’s exclusive Los Lagos neighborhood until selling his home on Valle Vista Court in September for $1.3 million.

Both men were at one time directors of Bayside Church in Granite Bay. Shaull was also a church employee, working in fundraising, and a church pastor, before leaving Bayside to work in real estate, according to a search warrant.

“We have been deeply saddened to learn of the charges against Scott Shaull and Steven Holgate in an alleged political corruption scheme in San Jacinto in southern California,” Bill Clark, Bayside’s chief of staff, said in an e-mailed statement to The Press Tribune. “These alleged transactions were part of a business relationship between the two men and in no way involved the church. We have done a thorough investigation and are absolutely confident that no Bayside funds were used in any of the alleged transactions.”

At the core of the scandal was an alleged scheme in which various parties funneled money to political campaign warchests in return for real-estate concessions and council votes, according to court records.

In the search warrant, Riverside DA Senior Investigator Kim Robinson wrote that Shaull purchased a home from San Jacinto city councilman Jim Ayres and his wife, a San Jacinto school trustee, for $89,950 more than its appraised value.

Shaull allegedly used money from Holgate to pay for it, the warrant states. Holgate stood to benefit from favorable votes by Ayers, investigators alleged.

“Essentially, the aforementioned investigation shows that money used to open a bank account by Shaull was transferred to his bank account directly from Holgate,” Robinson wrote.

The extra $89,950 should have been reported as a gift, Robinson said, but never was. In addition, another employee of Holgate’s paid Ayres’ wife, Nancy, a San Jacinto school board member, $36,000 that was never reported.

The upshot is that Holgate stood to benefit – and apparently did – from favorable San Jacinto council votes, according to the warrant.

Calls to Shaull’s attorney weren’t returned on Tuesday. Holgate didn’t return a message requesting comment.

Bayside said that though the church was “disappointed,” “we will continue to offer our support and love to these two families.”

Shaull was booked into the Roseville Jail on $25,000 bail but was no longer in custody on Thursday.

Check back for more on this story as details become available.

Got info? If you know either of the local men involved in this case, call the reporter on this story at 916-774-7969.