There is strong evidence that Oakley Councilmembers Shannon Shaw and Hugh Henderson laundered campaign contributions received from Ohara Properties (Matt Beinke) and DeNova Homes through CREPAC. CREPAC is the California Real Estate Association Political Action Committee. Below is the narrative explaining my concerns to the Fair Political Practices Commission (FPPC). Shaw and Henderson returned their campaign contributions to DeNova Homes and Ohara Properties. They arranged to have CREPAC donate the same amount of money to them as was returned to the other two organizations. The arrangement with CRPAC was to facilitate Shaw and Henderson to bypass the requirements of SB1439 and vote for Benike’s favorite McDonald’s and Quick Quack Car Wash at Laurel Plaza.
The FPPC responded, saying the Enforcement Division would not pursue the matter. Laura Magner was the contact within the FPPC. I agreed with her that the issue was highly complex, and the Enforcement Division did not have the resources to pursue it. The assessment is remarkably accurate because CREPAC has over four million dollars to engage the FPPC in a legal confrontation.
However, law enforcement, especially the California State Attorney General’s Office, to investigate the matter. The matter will move forward to the California State Attorney General’s Office. I will inform the community of any response I receive if I am allowed to do so.
When I became aware of Shaw and Henderson’s actions, I lost an appetite for a while. I viewed the incident as a betrayal to the voters who entrusted them to represent them lawfully and a traitorous act against the community.
I will have more to say with further details in the future. In the interim, I have provided copies of pertinent documents, including a copy of the complaint and the FPPC response.
Narrative
My sworn complaint involves City of Oakley Councilmembers Shannon Shaw and Hugh Henderson. They prevailed in the November 2022 Oakley election cycle. Shaw and Henderson received during the election cycle what residents in Oakley consider significant campaign contributions from various land developers. After the passage of SB 1439 of the 2021-2022 legislative session, both Shaw and Henderson returned the donations to the developers. Both candidates received identical contributions in the amount of money both candidates returned. The contributions were from the California Real Estate Association Political Action Committee (CRE-PAC).
The Mayor of Oakley, Aaron Meadows, endorsed both candidates and is an influential member of the California Real Estate Association of California.
An impetus for the campaign donations was an event on April 27, 2021 that involved O’Hara Properties and its owner, Matt Beinke. The City Council, during the April meeting, denied Mr. Beinke and O’Hara Properties a Conditional Use Permit (CUP) for a McDonald’s drive-thru and a Quick Quack Car Wash. The denial of the CUP canceled the construction of the businesses. Mr. Beinke was furious with the council’s decision, as was Bryan Montgomery, the then City manager.
The new Oakley City Council, including Henderson and Shaw, directed the CUP issue to be brought back before the council on April 11, 2023. If SB 1439 were determined to apply to 2022 contributions, Councilmember Henderson would not have been allowed to vote for the item. Councilmembers Henderson and Shaw did vote for the item (approval for McDonald’s drive-thru CUP and a CUP for a Quick Quack car wash). They were the swing votes on a 3-2 favorable decision for the developer, O’Hara Properties. If Councilmember Henderson had not voted, the Conditional Use Permits (CUP) sought by O’Hara Properties would have been denied.
DeNova home developers brought a development project to the Oakley City Council on November 15, 20922, following the November 8, 2022 election. Councilmembers Shaw and Henderson would have been unable to vote on the item because of SB1439. However, the item was on the council agenda before Henderson and Shaw became seated council members. The item was approved unanimously by the then-sitting council members.
In my perspective, Henderson and Shaw laundered their campaign contributions through CRE-PAC, realizing they could not vote on critical land decisions because of the framing of SB 1439 if it were in force. They returned the money to the developers, and the CRE-PAC covered the losses from their campaign funds. Shaw’s and Henderson’s activity allowed both candidates to vote on crucial land development issues involving the developers who contributed to their campaigns.
I listed Councilmembers Henderson and Shaw as persons believed to have violated campaign contributions regulations and CRE-PAC. However, I think O’Hara Properties and DeNova Homes also conspired to violate the statutes. Also, I encourage current or former staff of the City of Oakley to be investigated to determine if any were involved in the conspiracy, along with former elected officials of the City.
It must be noted that Mayor Aaron Meadows has an intense interest in the development of Oakley and does have considerable sway within CRE PAC.
Yes, I am aware that a final determination was made stating that SB 1439 would not apply to 2022 election campaign contributions. I understand the ruling allowed both Henderson and Shaw to vote on all items that would come to the council dais involving O’Hara Properties and DeNova Homes following taking their seats on the council dais.
Records indicate that Shaw and Henderson returned the O’Hara Properties and Denova Homes contributions after receiving the CRE-PAC money. However, the crucial situation, in my mind, is both Henderson and Shaw violated campaign contribution regulations by allowing CRE- -PAC to launder some of their campaign contributions so they could vote on development projects presented by their contributors to their campaigns if the final ruling regarding SB 1439 were different.
I observed that the CRE-PAC reported donating contributions to Shaw and Henderson campaigns on 10/10/2022, but Shaw and Henderson reported receiving them on or after 10/23/2022. Shaw and Henderson were only required to submit the contributions on Form 460 following the election on 11/08/2022. Thus, the community of Oakley would only have seen the contributions after casting their ballots.
I did find a Form 497 for Henderson reporting a contribution he received from CRE-PAC on 10/26/2022. However, as you know, Form 497 is not widely known to be available to the public to disclose late donations. I did not find a Form 497 for Shaw listing her contribution from CRE-PAC.
Further Insights
Oakley Mayor Aaron Meadows was heavily involved in Shaw and Henderson’s campaign. Mayor Meadows maintains a close association with DeNova Homes and O’Hara Properties. I would not be surprised if Mayor Meadows conspired with DeNova Homes, O’Hara Properties, and CRE-PAC to launder Shaw and Henderson’s campaign.
Also, Bryan Montgomery, Oakley’s former city manager and now Indio’s city manager, took an extraordinary interest in O’Hara Properties to build a McDonald’s Fast Food facility in Oakley. In addition, an investigation of City Staff take place to ensure none were involved in laundering campaign funds.
Note:
While reviewing the CRE-PAC Form 460, I observed various donations to candidates involved with local elections for city council in their communities. I am curious if CRE-PAC laundered any of those candidates’ campaign contributions, especially those involving developers.
A review of Forms 460 and Form 497 revealed:
Henderson
Henderson’s Form 460, 09/25/2022-10/22/2022, indicates he received $1000.00 from DeNova Homes on 09/27/2022.
Henderson’s Form 460, 09/25/2022-10/22/2022, indicated he received $2000.00 from O’Hara Properties on 09/30/2022. Henderson’s Form 497 indicates receiving $3500.00 from CRE PAC on 10/26/2022. The date on Form 497 was 10/26/2022
Henderson’s Form 460, 10/23/2022 – 12/31/2022, indicates he received $3500.00 on 10/26/2022 from CRE PAC.
Henderson’s Form 460, 10/23/2022-12/31/2022, indicates he returned $1000.00 to DeNova Homes on 11/05/2022.
Henderson’s Form 460, 10/23/2022-12/31/2022, indicates he returned $2000.00 to O’Hara Properties on 11/05/2022.
Shaw
Shaw’s Form 460, 01/01/2022-09/24/2022, indicates she received a $1000.00 contribution from DeNova Homes on 09/07/2022.
Shaw’s Form 460, 10/23/2022-12/31/2022, indicates she received a $1000.00 contribution from CRE-PAC on 10/24/2022.
Shaw’s Form 460, 10/23/2022-12/31/2022, indicates that she returned a $1000.00 contribution to DeNova Homes. A date for the return was not listed on the Form 460.
DeNova Homes
DeNova Homes’ 460, 07/01/2022-12/31/2022, indicates that DeNova Homes paid $5,165.00 for the election of Henderson. The item was marked as an independent payment on 10/25/2022.
I could not locate a DeNova Homes Form 460 for the 11/08/2022 election, indicating a contribution to Henderson’s campaign.
I could not locate a DeNova Homes Form 460 for the 11/08/2022 election, indicating a return of any money to DeNova Homes by Henderson.
I could not locate a DeNova Homes Form 460 for the 11/08/2022 election indicating a contribution to Shaw’s campaign.
I could not locate a DeNova Homes Form 460 for the 11/08/2022 election indicating a return of money to DeNova Homes by Shaw.
O’Hara Properties
I could not locate Form 460 for O’Hara Properties involving the 11/08/2022 campaign.
CRE-PAC
CRE-PAC’s Form 460, 09/25/2022-10/22/2022, page 35 of 142, indicates CRE-PAC contributed $3500.00 to Henderson’s campaign on 10/10/2022.
CRE-PAC’s Form 460, 09/25/2022-10/22/2022, page 68 of 142, indicates CRE-PAC contributed $1000.00 to Shaw’s campaign on 10/10/2022.
I provided links to the documents mentioned above. The links are listed below.
Conclusion
On 04/27/2021, the Oakley City Council denied O’Hara Properties and the owner, Matt Beinke, a Conditional Use Permit (CUP) for a McDonald’s Restaurant Drive-Thru and a Quick Quack Car Wash. Mr. Beinke was visibly upset with the council’s decision. Oakley City Manager Joshua McMurray, Former Oakley City Manager Bryan Montgomery, City Attorney Derek Cole, and Councilmember Aaron Meadows were perplexed and stunned by the council’s decision.
During the election cycle set for 11/08/2022, Matt Beinke and O’Hara Properties contributed heavily to Henderson’s campaign, at least by Oakley’s standards. DeNova Homes also contributed heavily to Henderson’s with direct and indirect campaign funds. Also, AB1439 passed the legislature during this period and was signed into law.
Some parties believed that with the passage of SB1439, Henderson, and Shaw would not be able to participate in votes concerning O’Hara Properties or DeNova Homes. Further, I think the parties conspired to have Henderson and Shaw return the campaign contributions to O’Hara Properties and DeNova Homes. CRE-PAC would donate the same amount to Henderson’s and Shaw’s campaigns. The carrying out of the conspiracy would allow Henderson and Shaw to vote on matters involving O’Hara Properties and DeNova Homes.
I believe the evidence exists that the conspiracy was completed.
On 04/25/2023, the city council, with Henderson and Shaw sitting on the dais, reversed itself and awarded a CUP for McDonald’s Drive-Thru and Quick Quack car wash. The meeting and decision were caustic, traumatic, and damaging for the residents of Oakley, especially those attending the city council meeting of 04/25/2023.
George Fuller, Ed.D.
City Councilmember, City of Oakley, CA
Councilmember Henderson is a past president of the Rotary Club of Oakley, and a current member of the Rotary Club of Oakley.
Councilmember Shaw is a current member of the Rotary Club of Oakley.
Democracy Dies in the Darkness – The Washington Post
George Fuller, Ed.D
City Councilmember, City of Oakley, CA
Can’t Shaw and Henderson be voted out as council members? I too, have been sickened by how they won their elections by accepting bribes from the start. Oakley genuinely appreciates your thoroughness and dedication to our city by looking into these matters and they need to be exposed.
Sorry Diane for the slow response – this reply got by me. Shaw and Henderson can be voted out of office in the November 2026 election. However, they can be recalled, and during the recall election another person can be elected to sit in their place. As you are aware, recalls in Oakley do not happen. Primarily this is because 25% of the registered voters must sign a petition to have a recall election. Assessing this on a community wide election that is about 5,000 voters. However, district recalls would be easier to pull off in Oakley in my mind. The percentage to sign the petition I believe is smaller. However, even at 25% it would be approximately 1250.00 registered voters in the district. Some aspects I believe to be good paths to follow recalls need to originate by a person in the district. Voters get territorial when someone outside the district wants to get a recall underway. Also, a candidate to replace the current council member needs to step up to fill the void. I there is not an active candidate, people say “it will just be the same” and lose interest. I believe Shaw is most vulnerable. She was elected by default with no opposition. This is more of a sign of weakness than strength. She does not have a lot of support in my perception (except Mike DuPray, which I am not so sure I would want making agreeable comments about me). Henderson is another matter. I do not know, yet, where he garnered his votes, but he was stronger in the election than I anticipated. Henderson is affable, but I am finding out he is low profile shady and sneaky. His firefighters did not think much of him. You probably know but the fire fighters voted unanimously no confidence in him in 2015. He honored his fire fighters no confidence vote by remaining two more years in the ECCFPD. If you go to the CA Secretary of State webpage you can find out the particulars on how to conduct a recall vote. Please, let’s continue to discuss the situation. Merry Christmas, George.
I wrote back but I don’t know if it was sent to you or not. It was a paragraph sent tonight.