Wagner Faces April 2 Sentencing in Theft

Former school district executive Stephen A. Wagner will be sentenced April 2 on charges related to the theft of more than $3.5 million from the Newport-Mesa Unified School District.

Wagner pleaded guilty in December to five counts of misappropriating public funds and filing false state income tax returns between November, 1986, and April, 1992. He faces up to eight years and eight months in state prison.

On Friday, Orange County Superior Court Judge John J. Ryan ordered the county’s Probation Department to prepare a report recommending an appropriate sentence for Wagner.

Outside of court, defense attorney Paul S. Meyer said his client is doing everything he can to repay the district.

“Right now, our primary concern is restitution,” said Meyer. Meyer declined to elaborate, but said property belonging to Wagner has already been turned over to a court-appointed trustee to repay stolen funds.

The district attorney’s office also has been ordered to turn over jewels, coins, cash and checks seized from Wagner’s Newport Beach home to the trustee, who is overseeing Wagner’s bankruptcy case. Wagner and his wife sought Chapter 11 protection from creditors last July after the Internal Revenue Service filed a $2.4-million lien against the couple for back taxes.

The items, taken during a search of Wagner’s home on the day of his arrest, include: a large emerald and other gems of undetermined value, rare coins, a cashier’s check for $8,300 and a manila envelope with $3,700 cash.