Former Rep. Terrance John “TJ” Cox (D-Calif.) perpetrated fraud schemes, diverting funds, securing false loans, and misusing company money, prosecutors say.
Former U.S. Rep. Terrance John “TJ” Cox (D-Calif.) pled guilty on Monday to wire fraud and wire fraud affecting a financial institution, federal prosecutors announced.
Cox, 61, who represented California’s 21st Congressional District from 2019 to 2021, admitted to fraudulent schemes spanning several years that resulted in millions of dollars in losses.
According to the U.S. Attorney’s Office for the Eastern District of California, Cox executed multiple schemes between 2013 and 2018, diverting client payments and company funds into unauthorized bank accounts under his control. His actions resulted in the misappropriation of funds from companies with which he was affiliated, prosecutors said.
In one instance, Cox fraudulently secured a $1.5 million construction loan for the development of Granite Park, a recreational facility in Fresno.
To obtain the loan, Cox falsely claimed that one of his affiliated companies would serve as the guarantor, submitting a fabricated board resolution that purportedly showed unanimous support from company owners, prosecutors said.
The meeting took place, and the other owners did not agree to back the loan, court documents say. The loan went into default, leaving the financial institutions with significant losses.
The FBI and the IRS Criminal Investigation division conducted the probe of Cox’s financial dealings, which uncovered a pattern of financial misconduct that spanned years and involved multiple fraudulent transactions, prosecutors said.
Cox was originally indicted in 2022 on multiple counts, including 10 counts of wire fraud, 11 counts of money laundering, five counts of wire fraud affecting a financial institution, financial institution fraud, and illegal campaign contributions.
Investigators said that Cox used his various business and nonprofit ventures to secure fraudulent loans and misappropriate investor funds for personal expenses and unrelated business activities.
As part of his plea agreement, Cox pled guilty to two counts while prosecutors agreed to dismiss the remaining charges at sentencing. The plea deal requires Cox to accept responsibility for his actions, cooperate with investigators, and repay misappropriated funds.
Cox also agreed to pay up to $3.5 million in restitution to victims. The final amount will be determined by the court. He further consented to the forfeiture of assets obtained through his fraudulent activities, which could include business holdings and real estate properties.
Cox’s sentencing is scheduled for June 2. He faces a maximum sentence of 30 years in prison and a $1 million fine.
The Epoch Times did not hear back from an attorney representing Cox before publication.