Pat Coyne Charged with Bribery, Fraud, Money Laundering

Former Councilman Patrick J. Coyne has been charged with five counts that not only allege he took bribes from a developer, but also defrauded an investor in a doughnut business.

A criminal information was filed today in U.S. District Court against Coyne, 52, who has been a target of the Cuyahoga County corruption probe.

The fact that Coyne was charged by information rather than indictment indicates he is cooperating with investigators.

The information charges Coyne with one count each of: bribery concerning programs receiving federal funds, money laundering, conspiracy to commit bribery concerning programs receiving federal funds, structuring and wire fraud.

A hearing is expected next week at which Coyne could plead to the charges.

Coyne seat May 6, a few days before he was arrested and then released on bond.

Coyne is accused of taking $20,000 in bribes from real estate developer David Terry in 2008 with the intent to be influenced or rewarded for business transactions in connection with city of Strongsville, according to the information.

The money laundering charge is in connection with a payment Coyne made toward the purchase of a condominium in Marblehead, Ohio, using bribe money obtained from Terry. Terry previously pleaded guilty to bribing Coyne and awaits sentencing.

Coyne is also accused of using his position and influence to affect hiring decisions at the Cuyahoga County Coroner’s office.

Coyne is also charged with running a fraud from March 2011 through May 3, 2011, in which he invited an investor to invest in a Krispy Kreme doughnut franchise in Brunswick. In April 2011, the investor wrote Coyne two checks for a total of $32,000, but Coyne never disclosed to the investor that he had not discussed the franchise plan with Krispy Kreme, according to the information.

On May 5, 2011, The United States Attorney’s Office filed a civil complaint in forfeiture against the condo, which was valued at about $222,200. In the Complaint in Forfeiture, the United States alleges that on or about Jan. 18, 2008, Coyne paid more than $10,000 toward his purchase of the condo using criminally derived money. Under federal law, property involved in such a transaction is subject to forfeiture to the United States.