Thursday, June 23, 2011

Former Strongsville City Council Member Charged in Cuyahoga County Public Corruption Investigation

A five-count criminal information was filed today against Patrick J. Coyne, age 52, formerly a member of Strongsville City Council, in connection with the Cuyahoga County public corruption investigation, said Sharon L. Long, Deputy Chief, Criminal Division in the Northern District of Ohio; Stephen D. Anthony, Special Agent in Charge of the Cleveland Division of the FBI; Cleveland Office of Inspector General and Jose A. Gonzalez, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division.

Coyne was arrested last month, shortly after resigning his council seat.

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.

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, Ohio. 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 this condominium, which was valued at approximately $222,200. In the Complaint in Forfeiture, the United States alleges that on or about January 18, 2008, Coyne paid more than $10,000 toward his purchase of the condominium using criminally derived money. Under federal law, property involved in such a transaction is subject to forfeiture to the United States.

If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.

This case is being prosecuted by Assistant U.S. Attorney Nancy L. Kelley and Assistant U.S. Attorney Antoinette Bacon, following an investigation by the Cleveland office of the Federal Bureau of Investigation and the Internal Revenue Service. The investigation is ongoing.

An charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

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