Feds Bust Former Congressman for Alleged Money Laundering, Wire Fraud

Former Rep. T.J. Cox (D-CA) has been indicted for “multiple fraud schemes and campaign contribution fraud,” the feds announced Tuesday. All told, the 59-year-old faces 15 counts of wire fraud, 11 counts of money laundering, one count of financial institution fraud, and one count of campaign contribution fraud. Prosecutors accused Cox, who served in Congress from 2019 to 2021, of creating “unauthorized off-the-books bank accounts” and diverting “client and company money into those accounts through false representations, pretenses and promises.”

Between 2013 and 2018, he netted $1.7 million from diverted payments and investments that he’d “solicited and then stole,” the feds allege. He’s also accused of submitting fake bank statements to secure a mortgage loan for a property that he falsely claimed would be his primary residence. Instead, he planned to rent it to someone else. “Cox also fraudulently obtained a $1.5 million construction loan to develop the recreation area in Fresno known as Granite Park,” the feds said, adding that the loan ultimately went into default, creating a loss of $1.28 million. He faces a maximum of 20 years behind bars if convicted. Read more at Department of Justice.