Former Central Valley congressman TJ Cox pleaded not guilty Tuesday to more than two dozen federal counts including wire fraud, money laundering and campaign contribution fraud.
The Justice Department unsealed an indictment against the former Democratic congressman alleging 28 federal crimes. Prosecutors say Cox “acted with intent to defraud” through several companies he was involved with.
Cox is accused of diverting business wire transfers into his own personal bank account on multiple occasions in order to pay for personal expenses and to fund his other businesses. One example in the indictment details a scheme whereby Cox used his partial ownership status in an almond processing company to defraud potential investors and lenders of more than $750,000.
The indictment says he falsified bank statements and loan guarantees that cost investors and borrowers millions. One case of alleged fraud involved a loan for Fresno’s Granite Park sports complex. Prosecutors say Cox fraudulently obtained a $1.5 million construction loan by submitting a fabricated loan guarantee. The loan later went into default with a loss of more than $1.28 million.
Another charge alleges campaign funding fraud for his 2018 run for congress. The report says Cox “knowingly and willfully” violated limits on individual federal campaign contributions by devising a scheme in which he paid family members and business associates to funnel money into his own campaign under the guise of lawful campaign contributions.
Cox upset incumbent David Valadao in the 21st District back in 2018, serving one term in Congress before losing the seat back to Valadao in 2020.
Cox was arraigned in federal court Tuesday and released from custody on the condition that he restrict travel, surrender his passport, do regular check-ins with pre-trial services, have no contact with potential witnesses and submit a DNA test ahead of his next court date on October 12.
Each count carries a maximum of 20 to 30 years in federal prison, plus fines of nearly two million dollars.
