Former California lawmaker admits laundering money in BART coffee shop scheme
Attorney and former California Assemblyman Terrence “Terry” Goggin pleaded guilty in federal court this week to defrauding investors in his plan to build several coffee shops along Bay Area Rapid Transit lines.
Goggin, 78, entered a guilty plea in San Francisco to one count of money laundering. He faces up to 10 years in prison, a fine of $250,000 and a restitution order of at least $685,000.
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.
“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,” according to the statement.
Goggin also lied to those investors about his company’s relationship with BART, and the state of his finances, according to the statement.
His guilty plea comes more than two years after a grand jury indicted Goggins on four counts of wire fraud and nine counts of money laundering.
Goggins remains free on bond, and is scheduled to be sentenced April 1, 2020.
