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Feds fee ex-congressman TJ Cox with 28 counts for alleged fraud schemes

Bycbs editor

Aug 17, 2022

Washington — Former Rep. TJ Cox, a Democrat from California, is going through extra than dozen federal fees stemming from what federal prosecutors stated have been more than one fraud schemes and marketing campaign contribution fraud, the Justice Department introduced Tuesday.

A 28-remember indictment towards Cox, who served one term, became unsealed in federal district courtroom docket in California charging him with 15 counts of cord fraud, eleven counts of cash laundering, one remember of monetary group fraud and one remember of marketing campaign contribution fraud, in keeping with the Justice Department.

Cox became elected to symbolize California’s twenty first Congressional District in 2018, however misplaced the seat to Republican David Valadao in 2020. He became arrested on Tuesday, courtroom docket information show.

Federal prosecutors alleged that the “more than one” fraud schemes performed through Cox focused agencies he became affiliated with, together with their customers and vendors. He is accused of making unauthorized, off-the-books financial institution money owed and diverting cash into them via “fake representations, pretenses and promises.”

The Justice Department stated Cox received extra than $1.7 million via special fraud schemes perpetrated from 2013 to 2018, diverting consumer bills in addition to enterprise loans and investments he sought and stole.

Cox additionally allegedly submitted more than one fake representations to a lender to get hold of loan mortgage price range to shop for a assets, which he falsely stated might be his number one house and blanketed faux financial institution statements, in keeping with federal prosecutors. The newly unsealed indictment, however, claimed Cox sold the assets to hire it out.

The indictment additionally alleged Cox fraudulently acquired a $1.five million creation mortgage to broaden Granite Park, a activity place in Fresno, California. But Cox and a enterprise partner’s nonprofit enterprise could not qualify for the mortgage with out a “financially possible party” to assure the mortgage, so Cox falsely stated a enterprise affiliated with him might do so, in keeping with the Justice Department.

As a part of the scheme regarding the development mortgage, the previous congressman allegedly submitted a falsified board decision incorrectly pointing out that in a meeting, the enterprise proprietors agreed to assure the mortgage to broaden Granite Park. The meeting, however, in no way occurred, and the mortgage went into default, ensuing in a lack of extra than $1.28 million, federal prosecutors stated.

While he became strolling for Congress in 2018, Cox additionally allegedly completed a scheme to direct extra than $25,000 in unlawful straw or conduit donations from own circle of relatives participants and pals to his marketing campaign, in keeping with the Justice Department.

If discovered guilty, Cox faces up to twenty years in jail and a $250,000 first-class for cord fraud and cash laundering, a most of 30 years in jail and $1 million first-class for cord fraud affecting a monetary group and monetary group fraud, and as much as 5 years imprisonment and a $250,000 for marketing campaign contribution fraud.

Court information did now no longer listing an legal professional for Cox as of Tuesday afternoon.