SAN FRANCISCO (AP) — A former state assemblyman from San Bernardino pleaded guilty to money laundering after acknowledging he defrauded investors as CEO of a coffee shop chain in the San Francisco Bay Area, federal prosecutors said Thursday.
As part of a plea agreement, Terrence Goggin, 78, pleaded guilty to one count of money laundering and agreed to pay restitution of at least $685,000, U.S. Attorney David Anderson said.
A federal grand jury had charged him with four counts of wire fraud and nine counts of money laundering in a fraud scheme from 2007 to 2014 as Goggin's company, Metropolitan Coffee & Concessions, sought funding to build two Peet’s Coffee & Tea shops in high-traffic Bay Area Rapid Transit stations.
Goggin acknowledged that in September 2013 he and his employees diverted nearly all of the $685,000 in investment funds to other businesses, including Aegis Atlantic LLC, a Delaware company he headed as CEO, prosecutors said.
The San Francisco Chronicle reported that Goggin, a friend of then-Assembly Speaker Willie Brown, came to San Francisco to practice law after Brown was elected mayor in 1996.
Goggin remains free on bond pending a sentencing hearing scheduled for April. He faces a maximum sentence of 10 years in prison and a fine of $250,000, plus restitution.
A Democrat, Goggin served in the state Assembly from 1974 to 1984 and oversaw the Assembly Natural Resources Committee in the early 1980s.
This story has been updated to reflect that Goggin left the Assembly in 1984, not 1985.