Former California congressman arrested, charged with fraud

Fresno, CA (AP) — Former US Congressman A suspect from central California was arrested Tuesday by federal agents on charges of wire fraud, money laundering and campaign finance fraud stemming from "multiple fraud schemes," federal prosecutors said.

Terrance "T.J." Cox was arrested by Federal Bureau of Investigation agents in Fresno and sent to Fresno County Jail on federal marshal's hold, prison records show. I'm here. It wasn't immediately clear if there was an attorney available to speak on his behalf, and there was no immediate response to his message sent by email on Cox Tuesday.

Cox, a Democrat, will represent the 21st congressional district from January 2019 until he will serve in January 2021. The district is located in the agricultural San Joaquin Valley and includes parts of Kings, Fresno, Kern, and Tulea counties.

Cox, 59, has been charged with 15 counts of wire transfer fraud, 11 counts of money laundering, one count of financial institution fraud and one count of campaign finance fraud, federal prosecutor Phillip Talbert said in a statement.

Talbert said that between 2013 and 2018, Cox earned $1.7 million from client-raised funds and loans he obtained for the company, and he used the money to “Off-the-book bank accounts.”

Cox has worked with several companies, including a company that helps businesses get loans and federal tax credits, an almond processing company, and the non-profit organization that runs Granite Park. It was partially owned, controlled and employed by a company or non-profit organization. A recreational facility in Fresno, according to the complaint.

Cox also fraudulently obtained a $1.5 million construction loan to develop Granite Park, Talbert said.

After his nonprofit failed to qualify for a recreational facility construction loan without a party guaranteeing the loan, Cox claimed that one of his companies would guarantee the loan. and submitted a forged board resolution. A meeting where all company owners agreed to insure Granite Park's loan.

"No meetings were held and no other owners agreed to repay the loan," Talbert said.

The loan later defaulted, causing losses of more than $1.28 million, he said.

According to the indictment, when Cox was running for U.S. House of Representatives in 2017, he funded his campaign contributions and planned to reimburse his family and associates. prosecutor said. Cox arranged more than $25,000 in illegal straw or conduit donations for his campaign, Talbert said.

If convicted, Cox faces up to 20 years in prison and a fine of $250,000 for wire fraud and money laundering, and up to 30 years in prison and 100% for wire fraud affecting financial institutions. You could be fined $10,000. The campaign donation fraud charge carries a maximum penalty of five years in prison and he could be fined $250,000.