Laguna Niguel Man Held in 2010 Slaying of O.C. Executive

A Laguna Niguel man was arrested Monday in connection with 

Kenny Roy Kraft, 34, is being held on $250,000 bail on suspicion of being an accessory to murder in the June 2010 slaying of Christopher Ryan Smith of Laguna Beach. Kraft is the second suspect arrested in connection with the death of Smith.

Irvine resident Edward Younghoon Shin has been charged with murder in Smith's slaying in a suite on Rancho Viejo Road in San Juan Capistrano. Authorities allege that Shin killed Smith—his business partner—for money, then "went to great lengths" to cover it up. 

Smith and Shin were co-owners of 800xchange, a company that generated media leads for advertisers, Orange County Assistant Sheriff Mark Billings said. After working together for about two years, the two had a dispute about the business and Smith wanted out, Billings said.

 The business partners had apparently agreed that Smith would be paid $1 million upon leaving the company, but Shin killed him in the office they shared to avoid doing so, Billings alleged.

Shin drew up documents with Smith's forged signature, giving the rights of the company over to Shin, Orange County prosecutors allege.

According to the Orange County Sheriff's Department, Kraft helped Shin get rid of the victim's personal belongings, including Smith's car, a 2009 white Range Rover recovered recently by investigators in San Jose.

Smith was last seen alive by family in June 2010. According to investigators, after killing Smith, Shin hacked into his email account to communicate with his family.

When family members became suspicious, they hired a private investigator, then reported Smith missing to the Laguna Beach Police Department.

Shin was arrested about 11 a.m. Sunday at Los Angeles International Airport as he was about to board a flight for Canada.

It wasn't "100 percent clear'' why Shin was headed to Canada, said Billings, adding that he could have been leaving the country for business reasons.

Laguna Beach police had asked Orange County sheriff's deputies to take over the case Aug. 17 after concluding the murder happened in San Juan Capistrano, where blood evidence was reportedly found in the suspect's office earlier this month.

Shin had the office cleaned in an attempt to get rid of the blood, Lt. John Meyer said. DNA tests confirmed the blood was Smith's, he said. 

Investigators would not disclose the cause of death, but said there was a "fair amount of blood'' in the office, Billings said.

In his emails posing as Smith, Shin reportedly made it appear as if the victim were in Africa. ”We are aware of the emails, and that was part of what we turned over to the Sheriff’s Department,” said Laguna Beach Police Lt. Jason Kravetz.

Officials conducted a surveillance of Shin, who confessed Sunday during a six-hour interview with investigators, authorities said.

Kraft was scheduled to be arraigned today in Santa Ana. The arraignment for Shin was continued to Sept. 28.

Anyone with any information concerning Kraft, Shin and property they may have had belonging to Smith is asked to call the Sheriff's Department at 714-647-7048. 

—City News Service contributed to this report.