December 5, 2019, San Francisco – Terry Goggin, a former Democrat California state assemblyman, has pleaded guilty to money laundering.
Goggin falsely lead investors to fund the construction of Peet’s Coffee shops at various San Francisco BART stations, the U.S. Department of Justice said on Thursday, December 5, 2019.
Goggin, pleaded guilty to one count of money laundering in San Francisco federal court following an investigation by the FBI and the IRS, according to a statement by U.S. Attorney David L. Anderson.
Goggin was found to have solicited investor money from July 2007 to February 2014 to build Peet’s Coffee shops, getting a group of four private investors to provide him $585,000 for the Civic Center project and an individual investing $100,000 for the Balboa Park project.
Almost all of the $685,000 worth of investment funds was diverted by Goggin–and by his employees at his direction–to other bank accounts associated with other business ventures in which the investors did not agree to invest.
Goggin was charged with nine counts of money laundering and four counts of wire fraud on Sep. 13, 2018. Aside from pleading guilty to one charge of money laundering, Goggin agreed to pay restitution of at least $685,000.
Goggin is free on bond while awaiting sentencing and is due back in federal court on April 1, 2020. He faces a maximum of 10 years in prison and a fine of $250,000 plus the restitution amount.