FRESNO, Calif. — Former Congressman TJ Cox of Fresno was arrested Tuesday by the FBI on federal charges of “multiple fraud schemes” in his financial dealings.
The allegations against Cox, 59, are outlined in a 28-count indictment unsealed Tuesday in federal court in Fresno.
Cox, a Democrat, served a two-year term representing the 21st Congressional District in 2019 and 2020. If ultimately convicted he could face prison time and substantial fines.
The indictment was announced by U.S. Attorney Phillip A. Talbert. Cox 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.
Cox was arrested by the FBI at about 8:30 a.m. Tuesday and booked into the Fresno County Jail.
Among the allegations are that Cox fraudulently obtained a $1.5 million construction loan to develop Granite Park, a long-troubled recreation complex in central Fresno.
Cox and his business partner in Granite Park, Fresno developer Terance Frazier, were reportedly unable to qualify for a construction loan without a financially viable third party to guarantee the loan, according to federal officials.
“Cox falsely represented that one of his affiliated companies would guarantee the loan,” according to a statement from Talbert’s office, “and submitted a fabricated board resolution which falsely stated ... that all company owners agreed to participate in the granite Park loan.”
Federal officials said there was no board meeting and that other owners of the company did not agree to back the loan. That loan eventually ended up in default, creating a financial loss of more than $1.28 million to the lender.
If convicted, Cox, 59, faces potential penalties of up to 20 years in prison and a $250,000 fine for wire fraud and money laundering, and up to 30 years in prison and a $1 million fine for wire fraud affecting a financial institution. The charge of campaign contribution fraud carries a maximum penalty of five years in prison and a $250,000 fine.
The investigation is being conducted by the FBI and the IRS.
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