Events of GTA San Andreas
Pendelbury threatened to give the police damning evidence against Officer Frank Tenpenny and Officer Eddie Pulaski. He was not working for C.R.A.S.H., but was in Internal Affairs. Tenpenny, Pulaski and their new associate, Officer Jimmy Hernandez, eventually caught him. They took him to a secluded area in the dock area of Los Santos, where Officer Pulaski beats him up. Tenpenny stopped Pulaski and instructed Hernandez to kill him. At first Hernandez refused but after Tenpenny threatened his life, Hernandez shot and killed Pendelbury.
Tenpenny, Pulaski and Hernandez framed Carl Johnson for the murder of Officer Pendelbury, which allowed them to manipulate Carl for a period of time. Tenpenny and Pulaski were later both charged with the murder of Pendelbury, although Carl Johnson had already murdered Pulaski. Tenpenny was cleared of all charges due to lack of evidence, which effectively set off the Los Santos Riots, which led to his death.
Later, when Carl Johnson reaches Las Venturas, Mike Toreno tells him about Pendelbury's death at the hands of Officer Tenpenny, implying that Jimmy Hernandez told the Secret Services about the murder, but did not mention that he was the one who held the gun.