Ex-California congressman arrested, charged with fraud
Cox, a Democrat, represented the 21st congressional district from January 2019 to January 2021. The district is in the agriculture-rich San Joaquin Valley and includes Kings County and parts of Fresno, Kern and Tulare.
Cox, 59, was charged with 15 counts of wire fraud, 11 counts of money laundering, one count of financial institution fraud and one count of campaign contribution fraud, the lawyer said. American Phillip Talbert in a press release.
Talbert said that between 2013 and 2018, Cox allegedly obtained $1.7 million from funds he solicited from clients and loans he obtained for his businesses, then stole by embezzling the money. to “unofficial bank accounts”.
Cox owned, managed, and was employed in part by several businesses and nonprofits, including a business that helped businesses obtain federal loans and tax credits, an almond processing business, and a nonprofit organization. nonprofit that operated Granite Park, a recreation facility in Fresno, according to the complaint.
Cox also fraudulently obtained a $1.5 million construction loan to develop Granite Park, Talbert said.
After his nonprofit was unable to qualify for the loan to build the recreation facility without a party guaranteeing the loan, Cox said one of his companies would guarantee the loan and submitted a fabricated board resolution that falsely stated that in a meeting, all of the company’s owners had agreed to guarantee Granite Park’s loan.
“No meeting took place and the other owners did not agree to support the loan,” Talbert said.
The loan then went into default, resulting in a loss of more than $1.28 million, he said.
According to the indictment, when Cox was campaigning for the U.S. House of Representatives in 2017, he perpetrated a scheme to fund and reimburse his family members and associates for donations to his campaign, said the prosecutors. Cox arranged more than $25,000 in illegal straw or pipe donations for his campaign, Talbert said.
If convicted, Cox faces up to 20 years in prison and a $250,000 fine for wire fraud and money laundering, and up to 30 years in prison and a $1 million fine for fraud. electronics affecting a financial institution. The charge of campaign contribution fraud carries a maximum sentence of five years in prison and a fine of $250,000,