Being hired to manage a person’s or company’s assets requires a great deal of responsibility.
However, there are cases where these assets are misused by the individual in control of them. In August 2024, an Orange County man who ran a business serving as the executor of the estates of wealthy individuals, pleaded guilty to embezzling nearly $6 million from his clients.
Mr. David Robert McDonnell ran McDonnell Business Services. Through this company, high-net-worth individuals hired Mr. McDonnell to be the executor of their trusts. Mr. McDonnell’s job was to manage the trusts’ assets and to sell the assets and distribute the proceeds to the trusts’ beneficiaries when the individuals died. Mr. McDonnell allegedly did half of the job by liquidating the assets but diverted funds to his personal bank accounts. Mr. McDonnell misappropriated approximately $5.9 million from approximately four trusts—in one instance as much as a single check for $300,000.
Possibly the best course of action to prevent this from happening would be a thorough background check or separately keeping an account of the total value of assets so the beneficiary or beneficiaries can confirm they receive everything to which they are entitled.
Laguna Beach businessman who served as executor of wealthy clients’. (2024, August 12). https://www.justice.gov/usao-cdca/pr/laguna-beach-businessman-who-served-executor-wealthy-clients-estates-pleads-guilty
Photo by Chris L
