Plans to launch two Peet’s Coffee shops in city BART stations may be derailed, now that an alleged investment fraud by a former state assemblymember has come to light.
Court documents unsealed on Monday in U.S. District Court show that a federal grand jury in Oakland indicted Terrence Goggin, 77, on four counts of wire fraud and nine counts of money laundering. Goggin, who represented San Bernardino from 1974 to 1985 and who is now a lawyer in San Francisco, collected investor money to open Peet’s Coffee & Tea Shops at Civic Center and Balboa Park BART stations, but allegedly used it for other unapproved projects.
Goggin is behind the company Metropolitan Coffee and Concessions Co., which had previously built four Peet’s Coffee shops at BART stations, including Embarcadero. Now, he’s allegedly solicited $685,000 from two investment companies to build another two shops, and diverted the funds to an unapproved project in New York, including a now-closed restaurant Preserve 24, the East Bay Times reports.
The money was also allegedly transferred to personal projects without appropriate approval, with a girlfriend in Thailand receiving thousands of dollars.
Goggin is not currently in custody, and will reappear before U.S. Magistrate Judge Kandis Westmore on Dec. 5. If convicted, he faces a maximum of 20 years in prison and a $250,000 fine for wire charges, on top of another maximum of 10 years and a $250,000 fee for each money-laundering charge.