Two years has not been enough time for former Rep. T.J. Cox (D–Fresno) and the federal government to agree to a plea deal in his financial fraud case.
Instead, Cox could be headed to trial if a deal is not reached by December.
The big picture: Cox appeared in federal court on Wednesday in what was scheduled to be a change of plea hearing, which had already been postponed earlier this year.
- But Cox requested that the court set a status hearing to obtain a date for trial instead of accepting the government’s offer on Wednesday.
- That status hearing was set for Dec. 11.
- Cox’s attorney Mark Coleman said after the hearing that Cox simply needs more time to consider the plea deal.
- A federal prosecutor said during the hearing that the government’s offer could be off the table by the time the next hearing takes place in December.
The backstory: Cox – who served in Congress from 2019 to 2021 – was arrested in August 2022 after being indicted on 28 counts of financial fraud by a federal grand jury.
- He allegedly committed the crimes while he led Central Valley New Market Tax Credits before he served in Congress.
- The indictment accused Cox of illicitly obtaining over $1.7 million in diverted client payments and company loans and investments that he solicited and stole from 2013 to 2018.
- The indictment also accused Cox of fraudulently securing a $1.5 million loan for the Central Valley Community Sports Foundation, where he served as treasurer.
- He faces 15 counts of wire fraud, 11 counts of money laundering, one count of financial institution fraud and one count of campaign contribution fraud.
What they’re saying: “We’re hopeful that we’ll be able to negotiate a fair resolution of this case,” Coleman said. “We just needed time to do that.”
- Coleman declined to discuss the details of the plea deal that has been offered, or what the counter offers have been, noting that there are hundreds of thousands of pages of documents to go through.
- Coleman expects that he and Cox will make a decision to accept the plea deal or send the case to trial by December.
- Coleman also said he would not expect Cox to plead to all of the charges if he accepts a deal.
- “His reputation in the community is a large part of our considerations,” Coleman said. “I’ve spoken with a lot of people who are purportedly listed as victims, all of whom believe that Mr. Cox was fair, forthright and honest with them. But federal law can be very unforgiving, and a mistake or the best of intentions does not necessarily lead to an exoneration if you committed the act.”
