FBI arrests former Rep. T.J. Cox on dozens of fraud charges

The federal indictment accuses Cox of utilizing a cluster of enterprise entities to complement himself whereas saddling enterprise companions with losses. The doc describes a scheme by which Cox siphoned off cash into secret accounts and used the proceeds to repay his personal money owed, cowl private prices like personal college tuition and fund his political ambitions. He allegedly fabricated a board assembly to safe mortgage funding and lied on a mortgage mortgage software.

In an announcement, DOJ mentioned the California Democrat allegedly participated in “multiple fraud schemes” over a quantity of years. Between 2013 and 2018, he allegedly obtained “over $1.7 million in diverted client payments and company loans and investments” by off-the-books financial institution accounts.

Some of the diverted cash went towards Cox’s profitable marketing campaign for Congress, based on the federal authorities. The indictment describes Cox distributing $25,000 amongst relations and enterprise associates that they may then give to his marketing campaign. Cox narrowly unseated then-Rep. David Valadao (R) within the battleground district earlier than dropping a rematch to Valadao in 2020.

According to the indictment, Cox sought to funnel cash by allies with a view to juice his standing within the race, since public opinion typically prefers donations “over the candidate’s personal loans or donations.”

“The purpose of emphasizing individual donations was to keep pace with competitors that received high numbers of private donations and to show viability of the candidacy through individual donations,” the indictment says.

The indictment additional states Cox fraudulently obtained a $1.5 million building mortgage to develop a recreation space in Fresno, Calif. by falsely representing it could be assured. The mortgage later defaulted and prompted a loss of greater than $1.28 million.

After narrowly dropping his 2020 rematch with Valadao by about 1,500 votes, Cox mulled working once more in 2022, however finally endorsed Rudy Salas (D) for the congressional seat.

Salas distanced himself from Cox on Tuesday following the indictment: “T.J. Cox has disgraced himself,” he mentioned in an announcement.

Tax and fee points dogged Cox all through his time in Congress. The former lawmaker owed $145,000 in unpaid federal income tax in early 2020, prompting the Internal Revenue Service to put a lien on him and his spouse.

Requests for remark from Cox, his former chief of employees and the Fresno County Sheriff’s Office weren’t instantly returned.