According to the Business Journal, “Former Central Valley Congressman T.J. Cox was booked Tuesday morning into Fresno County Jail on 28 federal counts — arrested by the FBI on allegations including money laundering, wire and campaign contribution fraud.”
A 28-count indictment was unsealed today in the Eastern District of California charging a former member of Congress with multiple fraud schemes and campaign contribution fraud.
In response to today’s federal indictment of former Rep. TJ Cox, Congressional Candidate for CA-22, Rudy Salas released the following statement: “TJ Cox has disgraced himself.”
The unsealed indictment stated,
Terrance John “TJ” Cox, 59, of Fresno, 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 allegations in the indictment, Cox perpetrated multiple fraud schemes targeting companies he was affiliated with and their clients and vendors. Cox created unauthorized off-the-books bank accounts and diverted client and company money into those accounts through false representations, pretenses and promises. From 2013 to 2018, across two different fraud schemes, Cox illicitly obtained over $1.7 million in diverted client payments and company loans and investments he solicited and then stole.
In addition, Cox allegedly received mortgage loan funds from a lender for a 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.
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.
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.
If convicted, C ox 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.
U.S. Attorney Phillip A. Talbert of the Eastern District of California made the announcement.
The FBI and IRS Criminal Investigation are investigating the case.
Assistant U.S. Attorneys Henry Z. Carbajal III and Jeffrey A. Spivak are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
7 thoughts on “FBI Arrests TJ Cox for Fraud and Money Laundering”
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Doesn’t matter how high up the ladder one has climbed. It doesn’t matter what your politics are. If you aren’t prepared to do the time then don’t do the crime. I just wished that their children didn’t have to go through all of this. Too many children of public figures sadly and needlessly end up carrying their parents burdens around their hearts and minds. It’s a heavy load.
There are so many in public service that abuse their positions. The law needs to hammer out these corrupt people. I hope the FBI also looks into Kings County DA Keith Fagundes. Thankfully he lost the re-election and only has a few months left. But I read he was funneling money to his family too. And crazy purchases with our county funds! This corruption needs to stop!
The FBI helps the police & sheriffs depts solve: murders, rapes, robberies, child abductions and every police & sheriff depts should denounce republicans who criticize them. The FBI is the backbone of law enforcement. Instead of criticizing the FBI republicans should be mad at Trump for taking those secret documents home like they were about Hillary Clintons emails.
Another one bites the dust!
Why is Rudy Salas releasing a statement on his Friend TJ ? Is it because Salas is worried that his friendship with TJ Cox is going to reflect negative on him and his election ? Cox had all the red flags in the very beginning but Salas didn’t seem concerned then but all of a sudden he is . Thank goodness enough people saw TJ for who he really is and voted for David Valadao instead
Here is a quote from Salas about TJ . Salas gives praise to Cox stating it is an honor to have the former congressmember on his side. I guess having a crook on your side doesn’t look good. Salas has bad judgment .
“It’s an honor to call TJ a friend and supporter,” Salas said. “I know how our communities are better-off as a result of his service.”
The strange thing is: huge outcry when documents marked Top Secret are retrieved, stunning silence when a politician is sent to prison by the very same ‘police state’, politically motivated FBI.
“All animals are equal but some animals are more equal than others”, anyone?
This proves the FBI isn’t corrupt and is non partisan like republicans have claimed over the Trump search. Republicans just don’t want to believe there God Trump could do anything wrong. Nobody wants to believe they’ve been conned. Or, if he is a member of there party he could do no wrong.