Washington — Former Democratic Congressman TJ Cox from California is facing more than 20 federal indictments stemming from what federal prosecutors said was multiple fraud schemes and campaign finance fraud, the Justice Department announced . Tuesday.
A 28-count indictment against Cox, who served one term, was opened in United States District Court in California, finding 15 counts of wire fraud, 11 counts of laundering his money, I was indicted on one count. He has one count of financial institution fraud and one count of campaign finance fraud, according to the Justice Department.
Cox said he was elected to represent California's 21st congressional district in 2018, but in 2020 he lost the Republican seat to David Valadao. He was arrested on Tuesday, according to court records.
Federal prosecutors alleged that "multiple" fraud schemes carried out by Cox targeted companies associated with Cox and their clients and vendors. He is accused of creating unauthorized off-the-books bank accounts and of diverting money into those accounts through "false representations, misrepresentations and promises."
The DOJ found that Cox earned more than $1.7 million through two different fraud schemes carried out between 2013 and 2018, diverting client payments as well as company loans and investments. said. sought and stolen.
According to federal prosecutors, Cox also allegedly submitted multiple false statements to lenders to receive mortgage funds to purchase properties. According to federal prosecutors, he lied about it being his primary residence and included fake bank statements. However, the newly opened indictment alleges that Cox purchased the property to rent it out.
The indictment also alleges that Cox fraudulently received a $1.5 million construction loan to develop Granite Park, a recreational area in Fresno, California. However, according to the Justice Department, Cox and his business partner nonprofits were not eligible for the loan without an "economically viable party" to guarantee the loan, so Cox partnered with him.
As part of a plan involving a construction loan, a former congressman guaranteed a loan for company owners to develop Granite Park during a meeting. Allegedly submitted a false board resolution that erroneously stated that he agreed to But the meeting never took place and the loan defaulted, resulting in a loss of more than $1.28 million, federal prosecutors said.
According to the Department of Justice, while Cox was running for Congress in 2018, he received more than $25,000 in illegal straw or conduit donations from his family and associates to support his campaign. It is said that he carried out a plan to turn to
If convicted, Cox faces up to 20 years in prison and a fine of $250,000 for wire fraud and money laundering, and up to 30 years in prison for wire fraud affecting financial institutions and financial institutions. and fraud facing fines of $1 million, and up to five years in prison, and $250,000 for campaign contribution fraud.
Court records did not list Cox's attorney as of Tuesday afternoon.
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