Slain Man’s Girlfriend Sentenced in Theft

The girlfriend of slain millionaire William F. McLaughlin pleaded guilty Friday to embezzling nearly $500,000 from him and forging his name on a check for $250,000.

Nanette Anne Johnston, 30, was sentenced to one year in County Jail and five years of probation, and was ordered to give a $1-million life insurance policy she had received from McLaughlin to his family.

But Johnston will be getting $385,000 and a car under an agreement that settles four civil suits, filed after the 1994 murder, that pitted Johnston against the family of the 55-year-old medical products entrepreneur.

Deputy Dist. Atty. Joe D’Agostino said a key to the agreement was making sure McLaughlin’s three children received restitution.

“The McLaughlin family seemed to be very content with the resolution because they got their money back,” the prosecutor said. “And it was very important to them that she went to jail for a year.”

Johnston’s lawyer, Barry O. Bernstein, said his client and the family had been working for weeks to reach an agreement that would allow everyone to move on with their lives.

“These are very difficult things for people,” Bernstein said. “There’s a lot of emotion involved.”

No arrests have been made in McLaughlin’s murder, and Newport Beach police say the investigation is ongoing.

McLaughlin died of six gunshot wounds to the chest Dec. 15, 1994. His son, Kevin, found the body at the home where Johnston and McLaughlin lived in Newport Beach’s Balboa Cove.

Early in the investigation, police named Johnston, who had lived four years with McLaughlin, and another boyfriend of hers as suspects. The two have denied any involvement.

Johnston was arrested on grand theft and forgery charges last April and charged with stealing $497,000 from McLaughlin’s accounts between Jan. 10, 1994, and the day of his death. Her lawyer had contended that Johnston was authorized to sign McLaughlin’s name on checks and other documents when he was unavailable.

The Dove Canyon woman faced a maximum sentence of five years in state prison if she had been convicted at trial, which was set for Monday.

Johnston declined to comment as she left court Friday following the sentence handed down by Superior Court Judge Richard L. Weatherspoon. The judge ordered her to begin her jail sentence in May.

Under the court agreement, she will receive $385,000--the bulk of it from her checking account, frozen by police upon her arrest. The remaining amount and the car was left to her in McLaughlin’s will. All interest in McLaughlin’s business and real estate holdings will go to his family, according to the agreement.

In another court case that is pending, Newport Beach police arrested Johnston this month on suspicion of filing false financial statements to obtain cars and home loans.