Laguna Beach Councilman Acquitted

Laguna Beach Councilman Wayne Baglin was found not guilty Thursday of six felony counts of conflict of interest for accepting a $36,000 commission in a real estate deal with the city.

An Orange County Superior Court jury reached a verdict after five hours of deliberations, a relatively swift end to a case that had divided the community.

Baglin, a real estate broker, had turned down three plea deals before going to trial. After the verdict, he hugged his attorney, Michael Molfetta, and thanked him before making a quick exit from the courtroom with his son, a cousin and a friend.

Baglin could have gotten about 6 1/2 years in prison if convicted. He also could have lost his real estate license and his seat on the City Council.

“Once I heard the verdict, I was of course elated,” said Baglin when reached at home. “There were those out there who said it was a big gamble” to take the case to trial rather than plead guilty to lesser charges.

“I guess I believed in the system,” he added. “And I believed very much in my innocence.”

Deputy Dist. Atty. Jeff Winter, the lead prosecutor in the trial, did not return a phone call seeking comment.

The trial lasted three days and centered on the legal and financial complexities of eminent domain, a procedure that allows a government to force an owner to sell property for its fair-market value.

In this case, two parcels on 3rd Street were owned by Edgar and Dorothy Hatfield, longtime clients and friends of Baglin. The council, in search of land for a senior citizens center and low-income-housing complex, voted to buy the property through eminent domain in January 2001. In the end, the sale was completed for $1.8 million without the need for eminent domain.

Though Baglin recused himself from the council’s vote and disclosed his relationship with the sellers, he represented the couple during negotiations with the city and received a $36,000 commission.

Under the state government code, elected officials are prohibited from having a financial interest in any contract made by them in their official capacity, or by any entity of which they are members.

In November, the O.C. Grand Jury indicted Baglin.

Testimony during the trial revolved mostly around Baglin’s consultations with City Atty. Philip Kohn and City Manager Kenneth C. Frank. Baglin, who took the stand as his own key witness, said both assured him that the eminent domain procedure would protect him.

Baglin said that when the council voted 4 to 0 in closed session Jan. 23, 2001, to authorize eminent domain, he believed any legal problems arising from the deal were gone.

But at a later council meeting, Baglin said, he was shocked when Frank and Kohn publicly said Laguna Beach had threatened to use eminent domain only as a tactic to close the deal and had no intention of using it.

Jurors said they believed Baglin, who backed up his testimony with records.