Laguna Beach Businessman Who Served as Executor of Wealthy Clients’ Estates Pleads Guilty to Embezzling Nearly $6 Million

Laguna Beach, CA – This week, David Robert McDonnell, 74, pleaded guilty to wire fraud and embezzlement of nearly $6 million from his clients over a period of several years. McDonnell, who ran a Laguna Beach-based company (McDonnell Business Services), broke his fiduciary responsibility where he was named as a trustee on various trusts, and stole from elderly individuals, beneficiaries, and charitable organizations. McDonnell feloniously misrepresented his clients and liquated their assets fraudulently.

The Laguna Beach Police Department launched an investigation when a beneficiary from one of the trusts contacted the LBPD Detective Bureau. That investigation uncovered other beneficiaries of trusts who did not receive disbursements. Some of those beneficiaries/victims, other than immediate family members of the deceased, included University of California Irvine (earmarked for Pancreatic Cancer Research), Children’s Hospital of Orange County (CHOC), and University of Southern California (Athletics Department). “I’m proud of Detective Joy Butterfield and the investigative team who brought justice to the families who were victimized,” said Chief Jeff Calvert.

LBPD enlisted the assistance of the Federal Bureau of Investigation (FBI) due to the need for forensic accounting and the United States Attorney’s Office for prosecution. Because of this collaborative effort, McDonnell faces up to 20 years in federal prison.

For any further questions, please contact Sergeant Randy Bitonti at (949) 497-0374.