Laguna Beach Embezzlement: David Robert McDonnell Admits to Embezzling $6 Million from Clients’ Estates
LAGUNA BEACH, CA – David Robert McDonnell, a 74-year-old businessman from Laguna Beach, has pleaded guilty to embezzling nearly $6 million from the estates of wealthy clients. The plea was entered on August 12, 2024, at the federal courthouse in Santa Ana, marking the conclusion of a scheme that spanned several years and defrauded multiple victims.
From 2018 to January 2024, McDonnell operated McDonnell Business Services, a company based in Laguna Beach. He was hired by high-net-worth individuals to serve as the executor of their trusts, a role that required him to manage the assets and, upon the death of the clients, to liquidate these assets and distribute the proceeds to the beneficiaries. Instead, McDonnell diverted approximately $5.9 million from four trusts into his personal bank accounts.
One significant instance of this embezzlement occurred in August 2020, when McDonnell transferred $300,000 from a trust account located in Capistrano Beach to his personal bank account in Laguna Beach. The funds were processed by Bank of America through servers in Texas, highlighting the interstate nature of the wire fraud.
McDonnell’s fraudulent activities were uncovered through an investigation conducted by the FBI in collaboration with the Laguna Beach Police Department. The case is being prosecuted by Assistant United States Attorney Jennifer L. Waier.
Legal Charges Against David Robert McDonnell
Wire Fraud (18 U.S.C. § 1343): David Robert McDonnell has been charged with one count of wire fraud, a serious federal offense involving the use of electronic communications to carry out fraudulent schemes. McDonnell admitted to misappropriating nearly $6 million from his clients’ trusts, a crime that could result in a maximum sentence of 20 years in federal prison.
The charge of wire fraud is particularly severe due to the significant amount of money involved and the breach of fiduciary duty. McDonnell is scheduled to be sentenced on December 9, 2024, by United States District Judge James V. Selna, where he faces the possibility of a lengthy prison term.
David Robert McDonnell faces up to 20 years in federal prison for embezzling nearly $6 million from the estates of his clients. The sentencing hearing on December 9, 2024, will determine the final outcome. Until then, McDonnell remains in custody.
Under the law, McDonnell’s guilty plea acknowledges his involvement in the crime, but the final sentence will be determined by the court. The legal process continues as the court considers the full impact of McDonnell’s actions on the victims and their families.
