Former California Democrat Rep. TJ Cox has been indicted on 28 felony counts of fraud that include money laundering and wire fraud.
The indictment was unsealed on Tuesday and some of the counts related to campaign contributions, CNN reported.
Cox pleaded not guilty in federal court on Tuesday afternoon, following his arrest hours before at the Fresno County federal courthouse, according to online records from the county Sheriff’s Office. He is charged with 15 counts of wire fraud, 11 counts of money laundering, one count of financial institution fraud, and one count of campaign contribution fraud, according to court documents.
If convicted, he could face up to 20 years in prison for wire fraud and money laundering charges, and up to 30 years in prison for the financial institution fraud and wire fraud affecting a financial institution charges.
After spending the day in the Fresno County Jail, Cox was released on his own recognizance after surrendering his passport, court records indicated. His next court hearing is set for October 12 before Magistrate Judge Barbara McAuliffe.
Cox, 59 was in Congress representing California’s 21st Congressional District for just one term — January 2019 to January 2021. He was first elected to the seat in 2018, defeating Republican incumbent David Valadao. Cox came to Congress as part of a blue wave in congressional races across the country that led to Democrats taking back the House from Republicans. In 2020, however, Valadao defeated Cox to win back the seat.
Over the course of nearly a decade, Cox created a number of off-the-books bank accounts and lied to receive hefty loans, according to the indictment.
“In addition, Cox allegedly received mortgage loan funds from a lender for property purchase by submitting multiple false representations to the lender, including fabricated bank statements and false statements that Cox intended to live in the property as his primary residence. However, the indictment alleges Cox intended to and did buy the property to rent it to someone else,” The Department of Justice said.
.@danabrams says, "Let's stop pretending the FBI only goes after Republicans," after an FBI investigation led to former U.S. Rep. TJ Cox, D-Cal., being indicted and charged with wire fraud, money laundering, financial fraud and campaign fraud.#DanAbramsLive pic.twitter.com/nbmbZuPxGW
— NewsNation (@NewsNation) August 17, 2022
What ever happened to Congressmen being public servants serving the people rather than gaming the system to personally profit their own pocketbook?https://t.co/Fx38XyU316
— Mark Meuser (@MarkMeuser) August 16, 2022
“According to allegations in the indictment, Cox also fraudulently obtained a $1.5 million construction loan to develop the recreation area in Fresno known as Granite Park. Cox and his business partner’s nonprofit could not qualify for the construction loan without a financially viable party guaranteeing the loan. Cox falsely represented that one of his affiliated companies would guarantee the loan, and submitted a fabricated board resolution which falsely stated that at a meeting on a given date all company owners agreed to guarantee the Granite Park loan. No meeting took place, and the other owners did not agree to back the loan. The loan later went into default causing a loss of more than $1.28 million,” the DOJ said.
“According to allegations in the indictment, when Cox was a candidate for the U.S. House of Representatives in the 2018 election, he perpetrated a scheme to fund and reimburse family members and associates for donations to his campaign. Cox arranged for over $25,000 in illegal straw or conduit donations to his campaign in 2017,” it said.
And if he is found guilty the penalties can be stiff.
“If convicted, Cox faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for wire fraud and money laundering. He faces a maximum statutory penalty of 30 years in prison and a $1 million fine for wire fraud affecting a financial institution and financial institution fraud. He faces a maximum statutory penalty of five years in prison and a $250,000 fine for campaign contribution fraud. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt,” the Department of Justice said.
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