FBI arrests former Congressman on cash laundering, wire fraud fees

Former Rep. T.J. Cox was arrested by the FBI in California on Tuesday over a number of fraud schemes, the Division of Justice stated.

Driving the information: The previous congressman was charged with “15 counts of wire fraud, 11 counts of cash laundering, one rely of economic establishment fraud, and one rely of marketing campaign contribution fraud,” in line with the DOJ.

  • By way of two completely different schemes (which ran from 2013 to 2018), “Cox illicitly obtained over $1.7 million in diverted consumer funds and firm loans and investments he solicited after which stole,” the DOJ stated.

Zoom in: Cox allegedly created “unauthorized off-the-books financial institution accounts” and made “false representations, pretenses and guarantees” to direct cash from shoppers and corporations into these accounts, the DOJ stated.

  • Cox additionally allegedly acquired a mortgage mortgage from a lender after making “a number of false representations to the lender,” which included false financial institution statements and false claims that he meant to make use of the property as his main residence, per the DOJ. He allegedly purchased the property and rented to another person.

Background: Cox was elected in 2018 to Congress earlier than he misplaced his spot in 2020 by a mere 1,500 votes. He thought of working once more in 2022 earlier than giving an endorsement to Democrat Rudy Salas, per Politico.

What we’re watching: Cox faces probably 20 years in jail and a $250,000 fantastic for the wire fraud and cash laundering fees alone.

  • He might additionally withstand 30 years and a $1 million fantastic behind bars “for wire fraud affecting a monetary establishment and monetary establishment fraud,” the DOJ stated.
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