Ex-Officer Suspected in Robberies Slain : Crime: Medal of Valor winner was wanted for a string of bank holdups. He was shot in a shopping center parking lot as he tried to flee FBI agents, authorities say.

A former Fountain Valley police officer, who once won a Medal of Valor but was fired for embezzling $36,000 from his police union, was shot to death Monday in a shopping center parking lot by FBI agents as they tried to arrest him on suspicion of a string of bank robberies, authorities said.

Kevin D. Arnold, 34, of Mission Viejo was shot once in the upper left chest about 2 p.m. at Portola Plaza, FBI spokesman Gary Morley said. The agents had a federal arrest warrant accusing him of robberies in San Diego County, Morley said.

As two FBI agents approached Arnold outside a McDonald’s restaurant in the 27700 block of San Margarita Parkway, he scuffled with them and then tried to drive away in a blue Ford Escort, sheriff’s deputies said. At least one agent opened fire, according to police and witnesses. FBI officials said Monday they had not determined whether Arnold was armed.

He died at Mission Hospital Regional Medical Center, Sheriff’s Lt. Hector Rivera said.

“The man was under surveillance and a suspect wanted for bank robberies in the San Diego area,” Rivera said. “He resisted the officers and . . . was shot.”

Arnold had been a police officer for 11 years when, last December, he pleaded guilty to embezzling money from the Fountain Valley police union, of which he was president. He was sentenced to six months in jail and fired. He was married and the father of four children. Neighbors said he had been working as an Amway salesman recently.

The shooting occurred a block from Trabuco Hills High School, where FBI agents took about 15 witnesses for questioning.

Morley said “the details are not completely clear at this point” as to why the agents, who had had Arnold under surveillance, chose to attempt the arrest in a busy shopping center parking lot.

“All we know right now is that there was a confrontation that he initiated,” Morley said.

Witnesses said they saw Arnold, who was not wearing a shirt, scuffling with two undercover agents, and that he managed to escape briefly before words were exchanged and he was shot. There were conflicting accounts from witnesses and police about how many times Arnold was shot and whether both agents fired their weapons.

One agent standing outside the driver’s window pointed his handgun at Arnold and fired, witnesses agreed.

“The guy shot him point blank,” said Josh Hollar, 16, of Mission Viejo, who works at the East Coast Bagel Co. in the plaza and was standing outside a florist’s shop when the shooting occurred. “He was trying to back the car out. As soon as it happened, I ran inside and called police. It was pretty sad.”

Nancy Sandoval, 51, of Mission Viejo said she was leaving McDonald’s with her 6-year-old daughter and a 3-year-old granddaughter when she saw the fracas a few yards from her car.

“All of a sudden these men were shoving and pushing each other,” Sandoval said. “I thought we better watch out, that looks like a fight. Then the one guy jumped into the blue car and was trying to get the key in the ignition or something.”

Sandoval said the man managed to start the car and back up, but the two others had their guns pointed at him.

“They were saying something to him, I couldn’t hear,” Sandoval said. “Then I heard what I thought were two gunshots.”

Raymond Rakitis, president of the Fountain Valley Police Assn. who worked with Arnold for 11 years, said Monday, “I saw the car [on television], but it never registered that it was his car.” Rakitis remembered Arnold as a “damn good officer.”

“But I guess the stress got to him,” Rakitis said. “He started doing stupid things, don’t ask me why.”

Arnold had paid back $10,000 to the police union before charges were filed against him, Rakitis said.

Arnold received the Medal of Valor for his actions in a controversial shootout in 1983 in which he shot a burglary suspect repeatedly after a foot chase.

His attorney, John D. Barnett, said Arnold was very remorseful about the embezzlement and was serious about making restitution.

Andy Rubly, 74, a neighbor of Arnold, described him as a “very, very friendly neighbor.” He said he last saw Arnold about noon Monday as the former officer was helping his oldest child, a 13-year-boy, mow a neighbor’s yard.

Times staff writers Len Hall and Rene Lynch contributed to this story.