OC Day Spa Bomber Likely To Plead Guilty To Fraud Charges, Feds Say

ALISO VIEJO, CA — A Long Beach man who is awaiting sentencing for planting a homemade bomb that killed his ex-girlfriend and injured two others at an Aliso Viejo day spa in 2018 is expected to plead guilty Thursday to federal fraud charges.

Stephen Beal, 64, has agreed to enter his plea in downtown Los Angeles to federal counts of wire fraud, Social Security fraud and concealment of bankruptcy assets, according to the U.S. Attorney's Office.

In the bombing case, Beal was convicted at retrial in July of use of a weapon of mass destruction resulting in death, malicious destruction of a building resulting in death, use of a destructive device in a crime of violence and possession of an unregistered destructive device.

He faces a potential life term in federal prison, and a mandatory minimum of 30 years, at sentencing on Jan. 19, prosecutors said.

In the separate fraud case, Beal was scheduled to go on trial next week on charges alleging he failed to report in a bankruptcy proceeding $350,000 he received from his late wife's estate. Beal also allegedly schemed to fraudulently obtain insurance benefits and Social Security payments.

In a plea agreement, Beal admitted to receiving about $1 million in fraudulent disability payments from an insurance company based on a disability he did not suffer from. He also admitted to receiving more than $350,000 in fraudulent Social Security benefits, and said he concealed assets from a bankruptcy court in connection with the filing of his 2009 bankruptcy, according to documents filed in Los Angeles federal court.

Beal was arrested March 3 in connection with the May 15, 2018, explosion at 11 Mareblu that killed 48-year-old Ildiko Krajnyak, who co-owned the Magyar Kozmetica day spa with Beal.

Beal was arrested the day after the blast and charged with possession of an unregistered destructive device, but prosecutors later dropped the charge and he was released.

Following his arrest earlier this month, Beal was indicted on four federal counts.

Beal threatened the woman after she admitted being in a relationship with another man, federal officials said.

"Pieces of wire found at the bombing scene matched wire discovered during a search Beal's home. About a week before the explosion, Beal was seen on surveillance video purchasing the type of battery used in the explosive device," FBI officials said.

Beal also allegedly purchased three cardboard boxes similar to the one that contained the bomb, and federal officials said he was one of the few people to have access to the business and was seen at the spa days before the blast.

FBI officials said Krajnyak was killed when she opened a cardboard box near the front desk of the Magyar Kozmetica spa, triggering the explosive device inside. The force of the massive explosion ripped Krajnyak's body apart and destroyed the building.

Evidence included pieces of wire found at the bombing scene that matched wire discovered during a search of Beal's home. About a week before the explosion, Beal was seen on surveillance video purchasing the type of battery used in the explosive device.

The defense argued that Beal was a rocket hobbyist with a history of building and launching hobby rockets and making fireworks -- and any wire or other materials found in his home had no connection to the bomb.