Ex-School Official Accused of Theft Faces More Charges

NEWPORT BEACH â€”  Prosecutors on Wednesday filed four more criminal charges against Stephen A. Wagner, claiming he failed to report on his state tax returns the $3 million he is accused of embezzling from the Newport-Mesa Unified School District.

Search warrants unsealed Wednesday provided a further glimpse into Wagner’s wealth beyond the Rolls-Royce, the two Mercedeses and the fur-lined bathrobe that have become legend in the corridors of the school district.

Gemstones found in Wagner’s safe, for instance, included a 16.28 karat rough emerald, an opal, a diamond and sapphire ring, diamond earrings, a blue sapphire and rubies.

Also Wednesday, leaders of the Newport-Mesa teachers union called on members to cast a no-confidence vote against the district superintendent and his two deputies.

Maya Decker, president of the Federation of Teachers, said union officers voted to recommend to teachers that the district’s seven-member school board “conduct an outside search for competent new leadership.�

“Recent disclosures about the extremely lax oversight of Wagner’s performance by his superiors underscores the lack of competent supervision,� the no-confidence memorandum to members said.

Wagner, until recently the district’s chief financial officer, pleaded not guilty on Monday to grand theft and misappropriation of public funds. Those charges carry a penalty of up to six years in prison.

Wagner was charged Wednesday with filing false tax returns for the years 1988 through 1991, which could add another two years to his sentence if he is convicted.

Deputy Dist. Atty. Carlton P. Biggs said the state tax board was basing its allegations on a discrepancy between “the money he reported on his tax returns and the money that went into his bank accounts.�

The IRS in July filed $2.4 million in liens against Wagner and his wife, Linda. Those filings were civil, not criminal.

Biggs said the district attorney’s final loss figure for Newport-Mesa “probably will go higher� than $3 million as auditors comb through school district records for 1986 and earlier.

“It’s $3 million now. But it could go to $3.5 million. We still need documentation from the bank,� said Assistant Supt. Thomas A. Godley. “It could go even higher than that.�

Godley said the $3 million allegedly missing from Newport-Mesa can be traced back as far as April 1987.

The additional $500,000 believed to be missing was taken between October, 1986, and March, 1987, Godley said. The district has requested financial documents dating back to 1983.

“We’re just still digging and waiting,� Godley said, noting that $50,000 is about the average cost of salary and benefits for one teacher.

Paul S. Meyer, Wagner’s attorney, said his client “suffers from a very complex psychological problem.� He declined to elaborate, saying “at this point it is premature to discuss my client’s psychological profile.�