The former California Democratic Representative TJ Cox was charged on Tuesday with 15 charges of wire fraud, 11 counts of money laundering, one count of financial institution fraud, and one count of campaign finance fraud, according to the Justice Department.
Terrance John Cox served as a congressman for California’s 21st Congressional District from 2019 to 2021. Cox is accused of a fraud conspiracy involving his congressional campaign in one of the counts. Authorities asserted that in 2017, Cox engaged in a $25,000 illegal straw or conduit donation scam. He allegedly paid back family members and associates who contributed to his campaign.
The former congressman risks up to five years in prison and a $250,000 fine if he is found guilty of misrepresenting the source of a campaign contribution.
Cox was charged with orchestrating numerous fraud schemes from 2013 to 2018. He allegedly opened unauthorized off-the-books bank accounts, according to the indictment. Cox used deceptive claims, pretenses, and pledges to target businesses he was associated with and transfer customer funds, business loans, and investments into those unlawful accounts. Diverted monies from the five-year strategy totaled $1.7 million.
He was charged with applying for a mortgage under false pretenses, according to the indictment. Cox informed the lender of his intention to buy a home as his main residence. Prosecutors asserted that the former lawmaker had always meant to rent the house out rather than live in it. He could receive up to 20 years in jail and a $250,000 fine if he is found guilty of wire fraud and money laundering.
Cox is also accused of getting a $1.5 million construction loan fraudulently so that Granite Park could be built in Fresno, California. Cox claimed that one of his linked companies would support the loan in order for it to be granted. Cox claimed that the owners agreed to guarantee the loan during a meeting he had with the company’s board.
According to the indictment, there was no meeting with the company’s board of directors, and the owners were never informed of the agreement. The loan became delinquent, resulting in a loss of more than $1.28 million. Cox faces up to 30 years in jail and a $1 million fine if he is found guilty of both financial institution fraud and wire fraud.
According to the Justice Department, the case is being investigated by the IRS Criminal Investigation division and the FBI.
