On December 16, 1918, the council of the
Boston Bar Association voted to investigate the conduct of Pelletier, Coakley, and Francis Carroll in connection with a case involving
Emerson Motors Company. Pursuant to that investigation, Michael J. Hayes stole papers from Coakley's office and turned them over to
Godfrey Lowell Cabot of the
Watch and Ward Society. In 1920, attorney Alvah G. Sleeper accused Coakley and Pelletier of extorting his client. Sleeper alleged that his client was being blackmailed by a mistress, and that Sleeper had followed his client to the payment point at the
Parker House where he saw Coakley, Joseph Pelletier, and another attorney accept the payment. Shortly after witnessing this meeting, Sleeper was visited by the alleged blackmailer, who asked how much Coakley had received. Sleeper told her that the amount was $150,000, and she replied that Coakley had not given her a fair share. Facing increased scrutiny, Coakley decided to press the matter of his stolen papers in response. On November 18, 1920, a grand jury indicted on Hayes, Cabot, and three other men on charges of conspiracy to steal Coakley's papers and larceny of property. Hayes and other defendant, Oswin T. Bourdon, pleaded guilty, but Cabot chose to go to trial, where he was found not guilty. On September 29, 1921, the Boston Bar Association filed disbarment petitions against Coakley, Daniel V. McIssac, and former Middlesex District Attorney
William J. Corcoran, along with a recommendation that Pelletier be removed from office, alleging that all four were guilty of deceit, malpractice, and gross misconduct. The allegations included: • In 1915, he convinced William De Ford Bigelow to pay him $50,000 in exchange for Coakley using his influence with Pelletier to prevent indictment. • Between 1916 and 1917, he and McIssac conspired to extort $116,000 from a client by fomenting a contest of her deceased husband's will. • In October 1916, he extorted $20,500 from the Emerson Motors Company in exchange for using his personal influence with Pelletier to save the company from indictment. • In November 1916, he attempted to extort $10,000 in legal fees from Warren C. Daniel of the Metropolitan Motors Company in exchange for convincing Pelletier not to indict the company. • In 1917, he, James Curley, Corcoran, and
Nathan A. Tufts (Corcoran's successor) extorted large sums of money from
Paramount Studio executives who attended a party at a brothel. • In 1918, while defending a client in a
replevin suit brought by Dorothy Cote, he threatened Cote with indictment by the district attorney's office, which led her to drop the suit. On April 21, the
Massachusetts Supreme Judicial Court found that Coakley was guilty of deceit, malpractice, and gross misconduct. On May 12, he was disbarred. Pelletier was removed from office and died shortly thereafter. Coakley was also indicted for perjury in connection with his testimony in the Berman case, but the charges were dropped in February 1924. In 1933,
Thomas C. O'Brien, who was Suffolk District Attorney at the time Coakley was charged, stated that subsequent evidence had cleared Coakley. In 1926, Coakley was criminally charged with fraud after he was sued by another former client, Oda Pappathanos, for recovery of money she alleged Coakley had obtained by misrepresenting the size of the settlement of her claim against a wealthy Maine man. Coakley was found not guilty of the criminal charges on July 31, 1926. On November 14, 1934, a jury awarded $77,433.33 to Francis D. Reardon of Emerson & Co. for failure to pay a $50,000 note owed by Coakley and his son-in-law, Charles L. Murdock, to the company's deceased president, Bartholomew Crowley.
Petition for reinstatement In 1933, with written support from a number of notable individuals including
Cardinal O'Connell,
Thomas Francis Lillis,
Louis J. Gallagher,
Edwin Stark Thomas,
William Robinson Pattangall,
Eugene N. Foss, Thomas C. O'Brien,
Alfred E. Smith,
James Roosevelt, 65 judges, and 3,470 attorneys, Coakley petitioned for reinstatement to the bar. Governor
Joseph B. Ely appeared in court on Coakley's behalf. His petition was denied by Judge Fred T. Field on March 28, 1934. Field wrote that Coakley's "deliberate misstatements" regarding his disbarment and his offer to admit guilt in exchange for readmission while also asserting his innocence showed a "lack of respect for the truth inconsistent with fitness for readmission to the bar". ==Later political career==