Former Dem lawmaker pleads guilty to money laundering in BART coffee scheme
A former California Assemblyman named Terrence 'Terry' Goggin has pleaded guilty to money laundering in attempt to defraud investors in a plan to build coffee shops by the Bay Area Rapid Transit (BART).
The 78-year-old Democrat put in his guilty plea in good ol' San Francisco and he now faces up to ten years in the slammer, restitution of a minimal $685,000, and just a little fine of $250,000 on top of it.
I guess they're throwing the fine on as the icing on the cake.
Sac Bee reported:
Goggin served in the Legislature as a Democrat from 1974 to 1985.
The former assemblyman was the founder and chief executive of Metropolitan Coffee and Concession Company. From July 2007 to February 2014, he solicited hundreds of thousands of dollars from investors to build a series of franchise coffee shops at BART stations, according to a U.S. Department of Justice statement.
The bigger details came in the report filed on Justice.gov.
Goggin, 78, of San Francisco, is a former California State Assemblyman and current California-licensed attorney. According to his guilty plea, he admitted that, in 2013 and 2014, he was the founder and CEO of Metropolitan Coffee and Concession Company, LLC (“MC2”). From July 2007 to February 26, 2014, Goggin solicited investor money to build Peet’s Coffee retail centers, including two future centers that he claimed he would build at the Civic Center and Balboa Park BART stations. The investors for the MC2 projects included a group of four private equity investors who provided financing in September 2013 of $585,000 for the Civic Center project and an individual who invested $100,000 in September 2013 for the Balboa Park project. Goggin falsely represented to those investors that their money would be used to build out those specific future Peet’s Coffee retail centers, when, in truth, he planned to use the funds for other purposes. Goggin further admitted that he also failed to provide the investors with accurate information about the relationship between MC2 and BART and about the state of MC2’s finances. In addition, Goggin admitted that in September 2013 he diverted, and directed his employees to divert, nearly all of the $685,000 in investment funds to other business bank accounts associated with business ventures into which the investors had not agreed, or intended, to invest. Among other transfers, on September 12, 2013, the same day MC2 received $585,000 from the private equity investors, Goggin knowingly directed the transfer of $15,000 from the MC2 bank account to the business bank account of Aegis Atlantic LLC, a Delaware company of which Goggin was also CEO. That money was never used for the agreed-upon BART projects and was instead spent on other purposes.
On September 13, 2018, a federal grand jury returned a superseding indictment charging Goggin with four counts of wire fraud, in violation of 18 U.S.C. § 1343, and nine counts of money laundering, in violation of 18 U.S.C. § 1957. Under the plea agreement, Goggin pleaded guilty to one count of money laundering and agreed to pay restitution of at least $685,000.
Goggin remains free on bond, pending sentencing.
Why do I start laughing every time I see a Democrat get caught in a big money scandal? You'd think after all these years of watching other people get caught breaking the law, that they'd learn a thing or two about a thing or two. You know, like how to follow the law, or at least how to not get caught breaking the law.
I guess it's in a politicians nature to be greedy. As if the government salary wasn't generous enough.
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