Former Rep. TJ Cox’s (D–Fresno) legal battle centering on 28 counts of financial frauds clocked in its second anniversary, with the former lawmaker on the verge of accepting a plea deal.
Cox, who was scheduled to return to Fresno’s Robert E. Coyle Federal Building on Monday for a change of plea hearing. That hearing has been delayed to Sept. 25.
The backstory: Cox, who served in Congress from 2019-2021, was arrested in August 2022 after being indicted by a federal grand jury for financial crimes that he allegedly committed when he led a local community development firm prior to Congress.
- The grand jury charged Cox 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 allegedly illicitly obtained over $1.7 million in diverted client payments and company loans and investments that he solicited and stole from 2013 to 2018 with his company Central Valley New Market Tax Credits.
- He was also accused of fraudulently securing a $1.5 million loan for the Central Valley Community Sports Foundation, where he was the treasurer.
- Cox initially pleaded not guilty in court.
How we got here: After getting released on bail two years ago, Cox told reporters in front of the Fresno County Jail that the indictment was politically motivated.
- He had been scheduled to appear in court for a number of status conference hearings, but those hearings were repeatedly delayed, which resulted in a plea deal offering earlier this year.
- In March, new court documents stated that the federal government offered Cox a plea deal, setting a hearing for May 22. But that hearing was delayed to give Cox more time to review the deal, leading to the change of plea hearing scheduled for Monday.
- Court documents have not revealed any details of what the federal government has offered Cox as part of the plea deal.
What we’re watching: Following the Sept. 25 hearing, Cox will return to court at a later date for his sentencing.
- Cox faces a maximum of 20 years in prison and a $250,000 fine for wire fraud and money laundering.
- He also faces a maximum of 30 years in prison and a $1 million fine for wire fraud affecting a financial institution and financial institution fraud.
- Further, Cox faces a maximum of five years in prison and a $250,000 fine for campaign contribution fraud.
