Former California congressman Terrance John "TJ" Cox, a Democrat, has been indicted on federal money laundering and wire fraud charges.
The FBI arrested Cox on Tuesday, according to public records with the Fresno County Sheriff’s Office, and the former lawmaker pleaded not guilty in federal court later that afternoon.
Cox, 59, allegedly perpetrated multiple fraud schemes "targeting companies he was affiliated with and their clients and vendors," including obtaining "over $1.7 million in diverted client payments and company loans and investments" through off-the-books bank accounts, according to a statement from the Justice Department.
He was charged with 15 counts of wire fraud, 11 counts of money laundering, one count of financial institutional fraud, and one count of campaign contribution fraud.
If convicted, Cox faces a maximum of 20 years in prison and a fine of $250,000 for wire fraud and money laundering.
In 2018, Cox narrowly defeated David Valadao, the Republican incumbent, in a competitive swing district. The DOJ said Cox in the lead-up to the race allegedly executed a scheme to direct more than $25,000 in illegal straw or conduit donations from family members and associated to his campaign.
According to the DOJ, Cox's alleged scheme spanned years where he targeted companies he was already affiliated with, including a nonprofit that operated Granite Park, a recreation facility in Fresno, an almond processing company, and a business that helped companies get loans and federal tax credits.
Solange Reyner ✉
Solange Reyner is a writer and editor for Newsmax. She has more than 15 years in the journalism industry reporting and covering news, sports and politics.
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