Slain Millionaire’s Fiancee Pleads Not Guilty to Check Forgery Charges : Courts: Municipal judge in Newport Beach reduces bail for Nanette Anne Johnston and schedules the preliminary hearing to begin May 5.

The fiancee of slain millionaire William Francis McLaughlin pleaded not guilty in Municipal Court on Friday to charges that she stole nearly half a million dollars from him by forging checks in his name--including more than $350,000 worth in the two days before his death.

Municipal Judge Christopher W. Strople reduced bail for Nanette Anne Johnston, 29, from $500,000 to $250,000, and set her preliminary hearing for May 5.

Johnston was jailed early in the week on charges of grand theft and forgery, several months after she was named by Newport Beach police as a suspect in the slaying of McLaughlin, who was 55.

Prosecutors allege that Johnston forged 15 checks in McLaughlin’s name between Jan. 10, 1994, and the day of his death, last Dec. 15. The largest checks for $250,000 and $75,000 were dated the day before his death, and another check for $30,000 was forged on the day he was killed, according to the criminal complaint.

The complaint charges Johnston with 15 counts of forgery and one count of grand theft.

Johnston’s bail originally was set in proportion to the amount of the alleged theft, Deputy District Atty. Joe D’Agostino said. However, prosecutors have since seized $220,000 from four local bank accounts belonging to Johnston and so agreed to a bail reduction.

But Johnston’s attorney, Barry O. Bernstein, said he thinks the bail is still too steep and was influenced by his client’s high profile as a murder suspect.

“I think bail was set because of the other publicity and that there is a certain aspect of anticipatory detention to the current bail,” Bernstein said.

Police say Johnston and her boyfriend, Erik Naposki, a former linebacker for the New England Patriots and Indianapolis Colts, are suspects in the slaying of McLaughlin. His body was found in his Balboa Coves home by his son, Kevin, with six gunshot wounds to the chest, prosecutors said.

Both suspects have denied in previous statements that they had anything to do with the murder, and police have said they don’t have enough evidence to arrest either for the slaying.

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On Friday, Johnston covered her face with her left hand to avoid television cameras, and rocked slowly from side to side during the proceedings. Naposki sat in the courtroom, mouthing a few words of support to Johnston when she lifted her hand and glanced his way.

Naposki said Johnston misses her sons, ages 9 and 7, who are now living with their father in Orange County. He also said he plans to contact her parents, who live out of state, and ask them for help in posting bail.

“I don’t think she belongs in jail on such a high bail,” Naposki said after the hearing. “I’m looking forward to her clearing herself. I know that she’s going to get out.”

Naposki, 28, who also attended a court hearing on Wednesday to show his support for Johnston, said his reputation and the life he built in Southern California have been ruined since he was named as a suspect in search warrants issued in February by police.

Naposki said he has lost work as a security guard and that negative publicity over the case cost him a football position with the World League Barcelona Dragons.

“A person is innocent until proven guilty,” Naposki said. “I used to believe in the system until now.”

Naposki said he’s been followed by police, his house has been searched and he has even given investigators blood samples. He also has offered an alibi for the night of the killing, which police believe occurred at 9:10 p.m.

Naposki said he and Johnston had traveled to Walnut to see her 9-year-old son play soccer. After the game, Naposki said he stopped by his home in Tustin, before heading for work in Newport Beach. Naposki said he was paged by his boss as he drove to work, and stopped at a pay phone on 17th Street in Tustin and used his calling card at 8:52 p.m. to return the page.

“There was not time to do something like this,” he said.

According to the warrants, Naposki became a suspect after police found suspicious items in his truck, including several stains on the carpet and a green towel with what appeared to be dried bloodstains.

But Naposki said the carpet stains came from spilled coffee, and the blood on the towel was his own from a shaving cut.

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Naposki’s attorney has sent a letter to police and to the district attorney’s office, outlining areas where he says the police evidence against Naposki is weak.

A police search warrant affidavit said Naposki had keys made at an Ace Hardware that could have been duplicates of McLaughlin’s keys. But Naposki said the Ace Hardware manager also told police that the store does not carry one of the key types in question.

Newport Beach Lt. Paul Henisey said Johnston and Naposki both remain suspects in the murder. But Henisey declined to discuss details of any evidence against Naposki.”At this point in time, we’ve focused on her and her involvement in the embezzlement charges,” he said.

Johnston stood to inherit at least $150,000 from McLaughlin’s estate, according to a search warrant affidavit earlier this year.

Naposki declined to talk about the nature of his relationship with Johnston but has said he only knew of a “simple business relationship” between Johnston and McLaughlin.

Prosecutors and police, however, have said statements from witnesses indicated that Johnston and McLaughlin had a personal and not a business relationship.