FRESNO, Calif. — A lawyer for former U.S. Rep. TJ Cox of California said the Democrat will plead guilty to two counts of fraud and pay $3.5 million in restitution after federal prosecutors alleged he perpetrated multiple schemes involving businesses he was involved in.
Attorney Mark Coleman told the Fresno Bee on Wednesday that Cox wanted to avoid trial and had reached a plea deal that dismissed 24 of the 26 charges he has faced since 2022.
“It’s very stressful for him. It’s very stressful for his family, and he wanted to get it behind him,” Coleman said. At the next hearing in January, Cox will enter guilty pleas to wire fraud and wire fraud affecting a financial institution, the Bee reported.
He agrees to pay $3.5 million in restitution and will be required to provide records of his financial standings once his plea changes, according to the deal. He is also subject to whatever sentence and fine is determined to be fair by the court.
Prosecutors said Cox stole more than $1.7 million in diverted client payments and company loans and investments. They also alleged Cox created false records and a fraudulent loan guarantee in order to secure a $1.5 million construction loan through a sports nonprofit for improvements at Granite Park, a sports complex in Fresno.
“Anytime you’re in business there are thousands of transactions, and people sometimes make shortcuts and it’s something he had to deal with,” Coleman said about the charges.
The counts that were dismissed included wire fraud, money laundering and campaign contribution fraud.
Prosecutors previously said that without the plea deal, Cox faced prison time and fines ranging from $250,000 to $1 million depending on the count, according to the Bee.
The charges date back to business Cox was conducting in 2018, documents show, as well as during his time in Congress. Cox was elected in 2018 by beating out incumbent Republican David Valadao for the seat that covered Kings County and parts of Fresno, Kern and Tulare counties. Valadao retook the seat from Cox in a 2020 rematch.