Newport Man and Sons Charged With Defrauding Banks
A Newport Beach man and his two sons will be arraigned next month on charges of defrauding 13 banks and other financial institutions around the country of $8 million through a complex real estate scheme.
John M. Coughlan Sr., 74, was indicted on 17 counts of mail and wire fraud Tuesday. John M. Coughlan Jr., 54, of Long Beach and Errol Coughlan, 49, of Malibu were indicted on the same charges.
The U.S. attorney’s office has alleged that the men would borrow money for a family construction business they claimed was working on various real estate projects and use another of their companies--Eagle Bonds & Insurance Brokers in Agoura--to provide the bonds to back up those loans, assuring lenders that their money was safe.
The indictment claims that the money--obtained in the mid-1980s--was not used for construction but instead for the Coughlans’ own enrichment, including the purchase of three Rolls-Royces.
Attorneys for the Coughlans denied the charges.
“They intend to defend themselves vigorously,” said Terry Christensen, attorney for Errol and John Jr. “We feel this is based on years of misinformation and misunderstanding, one assumption piled upon another.”
Richard Kirschner, attorney for John Coughlan Sr., called the charges “outrageous.”
He said his client “was not an officer, not a director, (and) not a control person” of either company.
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