T.J. Cox, Democratic ex-congressman, arrested by feds for role in fraud schemes
Federal authorities arrested former Rep. T.J. Cox, California Democrat, on Tuesday on expenses associated to numerous fraud schemes that stole over $1.7 million throughout a five-year interval.
The U.S. Attorney’s Office for the Eastern District of California mentioned that it unsealed an indictment towards Mr. Cox, 59, and charged him with 15 counts of wire fraud and 11 counts of money laundering.
He was additionally charged with a single rely every of financial-institution fraud and campaign-contribution fraud.
Mr. Cox, of Fresno, defeated incumbent Republican David Valadao in California’s twenty first congressional district as part of the Democratic wave election in the 2018 midterms. Mr. Valadao received again his seat in a 2020 rematch.
Prosecutors accused the one-term Congressman of illegally acquiring the money in consumer funds, company loans and investments in two completely different fraud schemes from 2013 to 2018.
Mr. Cox solicited corporations with which he was affiliated in addition to their purchasers and distributors below false pretenses, in response to the U.S. lawyer’s office, after which directed these funds into an unauthorized, off-the-books checking account.
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He additionally allegedly obtained a $1.5 million development mortgage by fraudulent means in order to redevelop Fresno’s Granite Park.
Mr. Cox and his business companion’s nonprofit group couldn’t qualify for the mortgage with out a guarantor, so prosecutors mentioned that Mr. Cox fabricated a board decision from one in all his affiliated corporations that claimed it will fulfill that obligation.
No board meeting ever happened and the opposite house owners didn’t comply with again the mortgage, in response to the lawyer’s office. The mortgage later went into default and prompted an almost $1.3 million loss.
The former congressman had additionally enacted a scheme to reimburse associates and relations for their contributions to his 2018 marketing campaign by arranging for over $25,000 in unlawful straw donations in 2017, in response to federal authorities.
Mr. Cox faces as much as 20 years in jail and a $250,000 tremendous.