Former California State Assemblyman Indicted For Fraud Scheme Involving BART Coffee Shops
OAKLAND – A federal grand jury returned a superseding indictment against defendant Terrence Patrick Goggin with four counts of wire fraud and nine counts of money-laundering, announced United States Attorney Alex G. Tse, Internal Revenue Service Special Agent in Charge Tara Sullivan, and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.
Goggin, 76, is a former California State Assemblyman and current California-licensed attorney. According to the superseding indictment unsealed today, Goggin also was the CEO of Metropolitan Coffee & Concessions (MC2) and perpetrated an investment fraud scheme through the company. MC2 owned and operated four Peet’s Coffee & Tea retail centers in Bay Area Rapid Transit (BART) stations and held permits to expand their business to other stations. In 2013, Goggin solicited and obtained money from private equity investors to fund the build-out of two additional retail centers at the Civic Center and Balboa Park BART stations. The indictment alleges that after receiving investor funds, Goggin diverted the money to non-approved business projects in New York City, including a now-closed restaurant called “Preserve 24.” Goggin also used his authority as CEO to direct MC2 employees to transfer the investor money inappropriately. Further, Goggin used investor funds to support his personal spending and transferred thousands of dollars to a girlfriend in Thailand.
Goggin made his initial appearance in federal court in Oakland on November 26, 2018. Goggin is presently out of custody. A bail hearing and appointment of counsel will occur at 9:30 a.m. on December 5, 2018, before the Honorable Kandis Westmore, U.S. Magistrate Judge.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Goggin faces a maximum sentence of 20 years imprisonment, and a fine of $250,000 or twice the gross gain or loss, plus restitution for each violation of 18 U.S.C. § 1343 (wire fraud) and a maximum sentence of 10 years imprisonment, and fine of $250,000 or twice the value of the criminal property involved in the transactions for each violation of 18 U.S.C. § 1957 (money laundering). However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Katie Burroughs Medearis is prosecuting the case with the assistance of Jessica Rodriguez Gonzalez. The prosecution is the result of an investigation by the Federal Bureau of Investigation and Internal Revenue Service–Criminal Investigation.