Coto de Caza Couple Accused of Stealing from Cancer Patient and MLB Player in Massive Fraud

A Coto de Caza couple faces 23 years in prison on charges of using their church, friends and family to defraud them of more than $3 million.

Businessman Steven Andrew McKinlay, 58, and fifty-six-year-old Kristi B. McKinlay, a certified public accountant, will be arraigned Tuesday on charges of defrauding investors and stealing more than $3 million in an affinity scheme.

According to the Orange County District Attorney’s Office, the pair allegedly duped a Major League Baseball player, a family friend who came into money through a devastating personal injury, and a cancer patient who wanted to secure an inheritance for his family.

The owners of God’s Sports Company, the McKinlays allegedly took money from investors and used it on a $10,000 a month rent for a San Clemente home and $7,000 a month rent for a Coto de Caza home, paying for their daughter’s wedding, purchasing a luxury suite at the Los Angeles Angels of Anaheim Stadium, purchasing cars, and paying off old debts and day-to-day expenses.

Several victims were associated with the defendants through their church. Such schemes are called affinity frauds.

“Affinity fraud most commonly happens in church, where victims are asked to invest with a false sense of trust in an investor who preaches morals and ethics,” said District Attorney Tony Rackauckas. “I want to remind the public that affinity fraud can also happen with people having the same nationality, race, or are living in senior living communities.

“Nobody is exempt from affinity fraud and people should vet everyone before investing, especially those they have a lot in common with or they think they know well and can trust.”

The McKinlays are charged with 10 felony counts of using untrue statements in the purchase or sale of a security, one felony count of grand theft, and one felony count for the use of a device in a scheme to defraud, with sentencing enhancement allegations for loss over $100,000, aggravated white collar crime over $500,000, causing property damage with loss over $1.3 million. If convicted, the defendants face a maximum sentence of 23 years and eight months in state prison. The McKinlays are in custody on $3 million bail and must prove the money is from a legal and legitimate source before posting bond.