Laguna Beach Police Lieutenant Jason Kravetz said, "I had a personal friend at Crown Valley Parkway at a red light who saw him blow right through a red light."
When officers responded to the crash scene, Koenig reportedly tried to back his Mitsubishi Lancer up and drive away. Police say that's when officers opened fire.
Koenig was pronounced dead at Mission Viejo Hospital in Mission Viejo at 5:20 p.m. Tuesday.
Laguna Beach police say more than one officer fired at the suspect. They have been placed on 72 hours administrative leave which is routine.
City News Service contributed to this story.