Former Filipino-American US House of Representatives member Terrance John "TJ" Cox was arrested by Federal Bureau of Investigation (FBI) agents for fraud earlier this week in California.
According to the indictment, Cox, 59, is 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.
Cox is accused of perpetrating multiple fraud schemes targeting companies he was affiliated with and their clients and vendors.
He also allegedly created unauthorized off-the-books bank accounts and diverted client and company money into those accounts through false representations.
"In addition, Cox allegedly received mortgage loan funds from a lender for a property purchase by submitting multiple false representations to the lender, including fabricated bank statements and false statements that Cox intended to live in the property as his primary residence," it added.
The indictment, however, alleged that Cox intended to and did buy the property to rent it to someone else.
Cox was also accused of fraudulently obtaining a $1.5 million construction loan to develop the recreation area in Fresno known as Granite Park.
He also allegedly falsely represented that one of his affiliated companies would guarantee the loan, and submitted a fabricated board resolution, stating that at a meeting on a given date, all company owners agreed to guarantee the Granite Park loan.
However, no meeting took place, and the owners did not agree to back the loan.
The loan later went into default causing a loss of more than $1.28 million.
In 2017, Cox diverted $25,000 in illegal “straw” contributions to his campaign to secretly “fund and reimburse family members and associates for donations to his campaign.
Cox, if convicted, faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for wire fraud and money laundering.
He also faces a maximum statutory penalty of 30 years in prison and a $1 million fine for wire fraud affecting a financial institution and financial institution fraud.
Moreover, Cox also faces a maximum statutory penalty of five years in prison and a $250,000 fine for campaign contribution fraud.