SEATTLE, WA – Terrance L. Cosgrove, 67, of Napa, California, is headed to federal prison after being sentenced to five years for a calculated scheme that ripped off a fishing company and the families of close friends. U.S. District Judge John C. Coughenour handed down the sentence today in Seattle, following Cosgrove’s guilty plea in December 2016 to two counts of wire fraud and one count of mail fraud.
The total take? Nearly $4 million. Cosgrove didn’t just skim from business profits; he systematically drained accounts established to protect the wives and children of men he claimed to call friends. The court also ordered Cosgrove to pay restitution totaling $2,915,916 and a hefty forfeiture money judgment of $3,936,977 – a small consolation to those he victimized.
“This defendant carefully tended a veneer of honesty and loyalty, while betraying those who trusted him most,” stated U.S. Attorney Annette L. Hayes. “He stole not only from his business partners but from the widow and children of close friends. The significant prison sentence imposed in this case is the proper ending to this callous crime.” The prosecution painted a picture of a man who feigned friendship while lining his own pockets.
The scheme unfolded in stages. In 2009, partners at ISP Trading discovered Cosgrove was siphoning off excessive management fees, ultimately embezzling over $3 million. Later, in 2013, the widow of a close friend discovered the trust fund her husband had established to care for her and their family had been gutted by Cosgrove – more than $335,000 gone. She was forced to sell the family home just to avoid foreclosure. A third scheme, spanning 2011-2012, saw Cosgrove diverting funds intended for the wife and children of another friend, stealing over half a million dollars.
According to court records, Cosgrove didn’t hoard the stolen money. He spent it. Lavishly. The plea agreement reveals a life fueled by luxury: multiple expensive homes, high-end cars, exclusive country club memberships, and a pricey wine collecting hobby. The FBI investigation, bolstered by forensic accountants, painstakingly documented the flow of funds, exposing the depth of Cosgrove’s greed. “By pillaging the finances of close friends’ families, Mr. Cosgrove subjected to further trauma the very people he pledged to help,” said Assistant Special Agent in Charge Carlos Mojica. “He exploited his immense responsibility as a business partner and trustee to fuel his greed.”
Assistant United States Attorney Francis Franze-Nakamura led the prosecution. The FBI handled the investigation. For press inquiries, contact Colleen Bernier at (206) 553-7970 until May 10th, after which Emily Langlie at (206) 553-4110 or Emily.Langlie@usdoj.gov should be contacted.
Related Federal Cases
- EDD Insider Decker Gets 3+ Years for $373K Fraud · Washington
- Yoga Boss Gumucio Gets 4 Years for $1M Tax Dodge · Washington
- Google Cornered: AG James Nails Tech Giant in Ad Monopoly Case · New Hampshire
- Live Nation Faces Lone Fight: NY AG Rejects DOJ Deal · Washington
- Live Nation & Ticketmaster Face Antitrust Fight in NY · Washington
Key Facts
- State: Washington
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
