Injuries Allegedly Exaggerated; Wife Also Indicted
By Del Quentin Wilber
Washington Post Staff Writer
Tuesday, November 4, 2008
A retired Navy commander who was awarded the Purple Heart for his actions after the 2001 terrorist attack on the Pentagon has been charged with lying about his injuries to collect more than $330,000 from a victims' fund.
Charles E. Coughlin, 49, of Severna Park pleaded not guilty yesterday to federal charges of mail fraud, theft of public money and filing fraudulent claims in connection with a scheme that helped him pay off auto loans and buy a $1 million house, prosecutors said.
A grand jury indicted Coughlin and his wife, Sabrina, 46, on Friday. Sabrina Coughlin pleaded not guilty to mail fraud at the federal courthouse in Washington.
Both were released on personal recognizance after a brief appearance before U.S. District Magistrate Judge Alan Kay. They declined to comment afterward.
The criminal charges come weeks after the federal government filed a civil suit to recover the money.
The government has taken custody of two of Coughlin's vehicles, and federal attorneys in the civil proceedings want the court's permission to seize them permanently, along with the house.
Charles Coughlin's attorney, Andrew Jay Graham, said his client was looking "forward to a fair trial before a jury."
Coughlin had said he was badly injured when hijacked American Airlines Flight 77 smashed into the Pentagon on Sept. 11, 2001, killing 184 people.
He was awarded the Purple Heart for his injuries and a Meritorious Service Medal for his conduct that day.
He told a magazine writer that he started to flee after the attack but ran back inside the Pentagon to help extinguish flames and escort co-workers to safety.
The government is challenging the account of injuries he submitted to the Justice Department's Victim Compensation Fund, which was established to pay those who lost relatives or were injured in the attacks.
The indictment alleges that Coughlin and his wife sought to "enrich themselves by making repeated false claims."
In the application for compensation, Coughlin said he was "struck on the head by falling debris" and hit his head on the floor on what he thought was a door, court records show.
To justify his claim, Coughlin used a medical opinion about a 1998 neck injury in his application to make it appear that he had suffered the injury Sept. 11, 2001, the indictment alleges.
Coughlin told the compensation fund that the injury substantially altered his life, making it impossible for him to run in marathons or play basketball and lacrosse, prosecutors wrote in the civil suit.
In fact, prosecutors wrote, Coughlin ran the New York City Marathon "in under four hours" just two months after the attacks. He also continued to play lacrosse and basketball.
Prosecutors with the U.S. attorney's office in the District said Coughlin's application for funds was denied in February 2004.
He appealed that ruling and was awarded $60,000.
But Coughlin "rejected that offer as too little money," the indictment alleges.
At a May 2004 hearing, prosecutors wrote, Coughlin and his wife falsely testified about the extent of his injuries. The compensation board awarded him $331,034, according to the indictment.
Coughlin used at least $200,000 to buy the house and pay off loans on his 2002 Mercedes-Benz and a 2002 Honda Odyssey, prosecutors have said.
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