An Orange County businessman has admitted to bilking nearly $6 million from his wealthy clients, confessing to a count of wire fraud in federal court. David Robert McDonnell, a 74-year-old from Laguna Beach, entered his guilty plea on Tuesday, acknowledging his long-term scheme of embezzling funds from trusts he was hired to oversee.
McDonnell, the owner of McDonnell Business Services, was trusted by affluent clients to execute their estates upon their passing, a role that demanded diligent management and proper distribution of assets. However, the U.S. Attorney's Office reported that instead of honoring his fiduciary duties, McDonnell diverted the assets to his personal accounts between 2018 and January 2024. In one instance, a check for $300,000 was written from a trust in Capistrano Beach directly into McDonnell's own coffers, routed through Bank of America servers located in Texas.
According to the U.S. Attorney’s Office for the Central District of California, McDonnell's plea agreement included the admission that he misappropriated around $5.9 million from about four trusts. The Federal Bureau of Investigation (FBI) and the Laguna Beach Police Department conducted the investigation, leading to the uncovering of McDonnell’s fraudulent activities.
Assistant U.S. Attorney Jennifer L. Waier, from the Santa Ana Branch Office, is handling the prosecution. A sentencing hearing is slated for December 9, where McDonnell could face up to 20 years in federal prison for his actions. The hearing will be overseen by United States District Judge James V. Selna, according to the release.
For further information, Ciaran McEvoy, Public Information Officer for the Attorney's Office, has been listed as the point of contact.
