TJ Cox set for plea deal on Monday

Former Rep. TJ Cox (D–Fresno) will appear in federal court on Monday to presumably accept a plea deal.

Monday’s hearing should bring Cox’s legal proceedings to an end two years after being indicted on various financial crimes.

The backstory: Cox, who served in Congress from 2019-2021, was arrested in August 2022 after being indicted by a federal grand jury for financial crimes that he allegedly committed when he led a local community development firm prior to Congress.

• The grand jury charged Cox 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 allegedly illicitly obtained over $1.7 million in diverted client payments and company loans and investments that he requested and stole from 2013 to 2018 with his company Central Valley New Market Tax Credits.
• He was also accused of fraudulently securing a $1.5 million loan for the Central Valley Community Sports Foundation, where he was the treasurer.
• Cox initially pleaded not guilty in court.

How we got here: After getting released on bail two years ago, Cox told reporters in front of the Fresno County Jail that the indictment was politically motivated.

• He had been scheduled to appear in court for a number of status conference hearings, but those hearings were repeatedly delayed, which resulted in a plea deal offering earlier this year.
• In March, new court documents stated that the federal government offered Cox a plea deal, setting a hearing for May 22. But that hearing was delayed to give Cox more time to review the deal, leading to the change of plea hearing scheduled for Monday.
• Court documents have not revealed any details of what the federal government has offered Cox as part of the plea deal.

What we’re watching: Following Monday’s hearing, Cox will return to court at a later date for his sentencing.

• Cox faces a maximum of 20 years in prison and a $250,000 fine for wire fraud and money laundering.
• He also faces a maximum of 30 years in prison and a $1 million fine for wire fraud affecting a financial institution and financial institution fraud.
• Further, Cox faces a maximum of five years in prison and a $250,000 fine for campaign contribution fraud.