Former California Congressman Indicted Over $1.7M In Diverted Payments

Aformer member of Congress has been charged with multiple fraud schemes and other fraudulent activities related to money laundering. The Department of Justice (DoJ) said that former Democratic California congressman Terrance John "TJ" Cox obtained "over $1.7 million in diverted client payments" for a period of six years.

In a press release published Tuesday, the DoJ revealed that Cox 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 DoJ revealed that the 28-count indictment was unsealed Tuesday in the Eastern District of California. According to the indictment, the 59-year-old politician "perpetrated multiple fraud schemes targeting companies he was affiliated with and their clients and vendors." Cox allegedly created "unauthorized" bank accounts to divert the money of clients into fraudulent accounts "through false representations, pretenses and promises."

"From 2013 to 2018, across two different fraud schemes, Cox illicitly obtained over $1.7 million in diverted client payments and company loans and investments he solicited and then stole," the DoJ stated.

It said that Cox received a mortgage loan for a property he rented out to someone else – contrary to his statements when he applied for the loan that he intended to live in the property, NBC News reported.