Wagner to Plead Guilty to Federal Charges : Courts: Plea bargain for convicted embezzler of Newport-Mesa school finances would mean a sentence of less than 20 years but enough of one to gladden parents and educators in the district.

SANTA ANA —  Stephen A. Wagner, the former Newport-Mesa school finance officer convicted of embezzlement, will plead guilty to federal mail and wire fraud charges when he appears before a U.S. District Court judge in two weeks, it was revealed during his arraignment Tuesday.

Attorneys for Wagner and the U.S. attorney’s office have signed a plea agreement to be filed today in federal court, according to Assistant U.S. Atty. David A. Hoffer.

Although Wagner faces a maximum 20-year-prison term and $1 million in fines, the plea agreement will mean that Wagner will be sentenced to something less.

The sentence is expected to be served concurrently with the six-year state prison term Wagner is already serving for his conviction on state embezzlement charges. With credit for good behavior and other factors, however, Wagner could be released from state prison after 2 1/2 years.

U.S. District Judge Linda McLaughlin will decide Dec. 1 whether to accept the proposed plea agreement.

The federal charges--three counts of wire fraud and one count of mail fraud--cover some of the same crimes to which Wagner has already pleaded guilty in state court.

But federal statutes hold Wagner responsible for the entire $3.7 million he is accused of stealing from the Newport-Mesa Unified School District. Under state law, there is no penalty enhancement for white-collar criminals who steal more than $100,000.

Appearing briefly before U.S. Magistrate Judge Ronald W. Rose Tuesday, Wagner spoke in a quiet voice as he answered several questions with single-word responses.

His hands secured in handcuffs and to a chain around his waist, Wagner pleaded not guilty to the federal charges when he appeared before Rose. But his attorney, Paul S. Meyer, said Wagner would plead guilty during his Dec. 1 court appearance before McLaughlin.

Wagner is being held without bail at the federal Metropolitan Detention Center in Los Angeles. He had been serving his sentence at a state prison at Vacaville.

The federal charges have gladdened school officials and parents of children who attended schools in the district, many of whom were upset that Wagner faced the prospect of spending only 30 months in prison for embezzling more than $3 million.