FRESNO, Calif. — The attorney for former U.S. Representative TJ Cox has announced that the Democrat will accept guilt on two counts of fraud and will compensate $3.5 million in restitution following allegations from federal prosecutors concerning a number of fraudulent schemes linked to his business activities.
Attorney Mark Coleman communicated to a local news outlet that Cox aimed to avoid the pressures of a trial and has arranged a plea deal that results in the dismissal of 24 out of the 26 charges he has faced since 2022.
“It has been a very challenging time for him and his family, and he wishes to resolve this matter,” Coleman remarked. In January, during the next scheduled court appearance, Cox is expected to plead guilty to charges of wire fraud and wire fraud involving a financial institution, as reported.
Under the terms of the agreement, he will make a restitution payment of $3.5 million and must also submit documentation regarding his financial condition once he has formally changed his plea. Moreover, he will be subject to any penalties and fines that the court considers appropriate.
Prosecutors alleged that Cox misappropriated over $1.7 million through diverted payments from clients, as well as loans and investments from his company. Additionally, they accused him of fabricating documents and creating a fraudulent loan guarantee to secure a $1.5 million construction loan through a sports nonprofit organization for enhancements at Granite Park, a sports complex located in Fresno.
“Engaging in business involves numerous transactions, and sometimes individuals take shortcuts, which is a situation he has had to confront,” Coleman stated in relation to the allegations.
The charges that are being dropped include accusations of wire fraud, money laundering, and fraud related to campaign contributions.
Prosecutors had previously indicated that if Cox did not agree to a plea deal, he could face incarceration and fines that could range from $250,000 to $1 million, depending on the specific charges.
The allegations trace back to Cox’s business dealings in 2018, as well as actions taken during his congressional tenure. Cox was elected to the House of Representatives in 2018, winning the seat from incumbent Republican David Valadao, which represented Kings County and segments of Fresno, Kern, and Tulare counties. However, Valadao reclaimed the seat from Cox in a rematch during the 2020 elections.
