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Bradenton Ex-Banker Wanted To Go To Jail Right Away

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By JOHN HIELSCHER

Sarasota Herald-Tribune

Published: November 6, 2008

TAMPA - Philip W. Coon sat down Wednesday in federal court, adjusted his tie, put on his glasses, took a hit of breath spray and was ready to begin serving time.

Coon, the former executive vice president at Coast Bank in Bradenton, wanted to plead guilty to conspiracy to commit wire fraud and money laundering and start his sentence right away.

But he needed a deal -- if he found county jail too rough, he could post bond to get out and await his assignment to a less-oppressive federal prison.

Magistrate Mark A. Pizzo demurred. He would let Coon enter county jail to begin marking time, but the former banker could not seek release if he did not like the conditions.

"I apologize in advance, but that's just how life is," Pizzo said.

The judge suggested that Coon listen to his attorney, James E. Felman, who wanted his client to wait until formal sentencing to a federal prison.

"I'll take my attorney's advice," said Coon, who had brought along a change of clothes in a bag emblazoned -- perhaps appropriately -- with the logo of broken mortgage giant Fannie Mae.

During an hourlong hearing, Pizzo accepted Coon's plea of guilty to a single felony count, which had been worked out in advance with the U.S. Attorney's Office.

Coon, 55, faces up to five years in prison and a $250,000 fine when he is sentenced in about three months. Prosecutors will recommend a lighter sentence because he cooperated and pleaded guilty. He will be barred from working in the banking industry.

Coon admits to exploiting his position as a top executive at Coast Bank to begin an illegal scheme that netted him more than $1 million.

That scheme helped sink Coast, which became so overwhelmed with bad loans that it was forced into a fire sale that cost its stockholders millions of dollars.

Coon's partner in the scheme, John Robert Miller, was a mortgage broker in Tampa. They skimmed fees from the loans Miller's customers obtained from Coast, with Coon pocketing 75 percent.

Coon -- who as head of residential lending made more than $400,000 in salary and commissions at Coast in 2005 -- used the money to travel and buy real estate, jewelry, a piano, clothing and wine. He also contributed to a church and supported family members.

Coast executives fired him in February 2007 after he refused to cooperate with the bank's investigation into the loan scam.

The bank also fired Melissa Coon, his wife, who was head of retail lending.

Coon will lose his Bradenton home, a second house, brokerage accounts, jewelry and other items to pay $1.5 million under the plea agreement. Miller, who pleaded guilty earlier, must pay a similar amount.

That money, according to the U.S. Attorney's Office, will go to Coast Bank, the designated victim of Coon's crime by being deprived of "the intangible right of honest services."

Sarasota attorney Alan Tannenbaum, who represents 65 Coast borrowers, tried to intervene in Wednesday's hearing. He said his clients are the real victims because they paid the money, through their loans, that Coon and Miller siphoned. He says those clients deserve restitution from the pair.

"The government's position is they are not victims," countered prosecutor Robert Mosakowski.

Felman, Coon's attorney, also argued that only Coast is the victim of Coon's crime. The plea agreement specifically states that the borrowers suffered no losses, he said.

Pizzo did not allow Tannenbaum to continue his argument. Tannenbaum said he will file motions before Coon is sentenced to gain restitution for his clients.

Coon remains free on a personal recognizance bond. He must surrender his passport by today, but Mosakowski does not consider him a flight risk.

As for Coon's attempt to immediately start his sentence, it was a new one for his lawyer.

"I've never seen it before," Felman said after the hearing.

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