Laguna Beach police said they spotted and followed about 12 people on board the boat between 4 and 6 a.m., until it got lost in the marine layer.
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Authorities said the passengers ditched the boat and fled upon getting to shore in the Crystal Cove State Park area. Authorities said it was believed to be a human smuggling incident.
Laguna Beach police and border protection officers searched for the suspects but did not find anyone. The search was terminated by 10 a.m.
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The suspects remain at large, and the panga boat was being removed from the beach as an investigation continued.