Former Democratic Congressman TJ Cox pleaded guilty in federal court on Monday in his financial fraud case.
His guilty plea comes around two months after he accepted a plea deal last December two years after he was initially charged.
Flashback: Cox, who served in Congress from 2019 to 2021, was arrested and indicted by a federal grand jury in 2022 on 28 counts of financial fraud relating to his time with Central Valley New Market Tax Credits.
- The indictment accused Cox of illicitly obtaining over $1.7 million in client payments and company loans, as well as fraudulently securing a $1.5 million loan for the Central Valley Community Sports Foundation, where he previously served as treasurer.
- Cox agreed to plead guilty to two counts last December: Wire Fraud and Wire Fraud Affecting a Financial Institution.
- The plea deal also included $3.5 million in restitution.
Driving the news: According to the plea deal, Cox diverted checks made out to Central Valley New Market Tax Credits to use for personal expenses, to fund other business ventures and to pay other personal and business debts.
- He has also pleaded guilty to obtaining a $1.5 million construction loan for Granite Park by fraudulent means. Cox falsely represented that one of his companies would guarantee the loan. He fabricated a board resolution that stated all company owners agreed to guarantee the loan, even though no meeting actually took place.
What we’re watching: Cox will return to court on June 2 to be sentenced.
- He faces a maximum of 30 years in prison and a $1 million fine, in addition to the $3.5 million in restitution that he has agreed to. The sentence and fine will be determined by a judge.