As he awaits a trial date on a Federal financial fraud charges, former Rep. T.J. Cox (D–Fresno) has declared bankruptcy.
Cox filed for Chapter 7 bankruptcy on Oct. 11 along with his wife Kathleen Murphy.
The big picture: Per the filing, Cox reported debt liabilities of nearly $2.5 million, while he has over $760,000 in assets.
- Most of his assets are tied up in his Fig Garden area house, worth around $740,000.
- The filing reported that Cox’s house needs plumbing work and a new roof, however, costing over $100,000.
- Further, Cox reported three vehicles in the filing, all of which have damage. He has a Tesla Model 3 that has body damage and a dead battery, a 2014 Honda Odyssey that has a dented door and a 2000 Dodge Durango that has its parking brake permanently engaged.
Go deeper: Along with his assets, Cox reported his financial involvement in six corporations and partnerships.
- He fully owns Troy Equipment Leasing LLC, CMSS Management Inc., and MJTJ, LLC.
- Troy Equipment Leasing, which deals in gold mining in Canada, owes $550,000 to investors, according to the filing.
- Cox also owes $410,000 to two Reno-based ex-business partners who were involved in significant incidents of elder abuse while running senior care facilities in Fresno and Nevada. One such incident led to the amputation of a man’s penis.
- Cox also owes $480,000 in business loan payments to Harris Bank N.A.
- Per the filing, Cox currently works as a development officer for the Latino Equity, Advocacy & Policy (LEAP) Institute in Huron, a social and environmental justice nonprofit. Along with Murphy, who is a pediatric physician, the couple earn more than $25,600 per month.
Flashback: Cox was arrested two years ago and indicted on 28 counts of financial fraud by a federal grand jury for allegedly committing crimes while leading Central Valley new Market Tax Credits before he took office in 2019.
- He has been accused of illegally obtaining over $1.7 million in diverted client payments, company loans and investments. He also has been accused of fraudulently securing a $1.5 million loan for the Central Valley Community Sports Foundation, where he was the treasurer.
What we’re watching: Cox is scheduled to appear in court on Dec. 11, where the court will hold a status hearing to obtain a date for trial.
- Cox had been set to change his plea to guilty in an apparent plea deal last month, but he pushed it off.
