Former CA Rep Charged With Money Laundering, Fraud: DOJ

FRESNO, CA — A former U.S. congressman from California has been charged with multiple counts of money laundering and fraud after federal authorities said he used business money to pay personal costs, created off-the-books bank accounts, and lied to receive multiple loans, according to court documents unsealed Tuesday.

Terrance John "TJ" Cox, 59, of Fresno, is charged with 15 counts of wire fraud, 11 counts of money laundering, one count of financial institution fraud, and one count of campaign contribution fraud, federal officials said.

Cox, a Democrat, represented California's 21st Congressional District from January 2019 to January 2020 after unseating then-Rep. David Valadao, Politico reported. Cox lost to Valadao, a Republican, in a 2020 rematch.

According to court documents, Cox illicitly obtained nearly $1.7 million through "multiple fraud schemes" targeting companies he was affiliated with as well as their clients and vendors.

Cox created off-the-books bank accounts and siphoned client money to those accounts through "false representations, pretenses, and promises," federal officials said. He then used the money to pay off personal debts and cover personal costs like private school tuition, Politico reported.

The indictment also claims Cox distributed more than $25,000 to friends, relatives and business partners so they could donate the money to his campaign for Congress.

Cox is also accused of receiving mortgage loan funds to purchase a property by submitting multiple false documents to the lender, including fabricated bank statements. Cox did, however, buy the property to rent it to someone else, officials said.

Finally, federal authorities said Cox fraudulently obtained a $1.5 million construction loan to develop a recreation area in Fresno known as Granite Park. Cox falsely claimed that one of his affiliated companies would guarantee the loan; however, the company owners did not agree to it. The loan later defaulted, causing a loss of more than $1.28 million, according to court documents.

If convicted, Cox could spend up to 20 years in prison and pay a fine of $250,000 for wire fraud and money laundering, according to federal officials.