Former Rep. TJ Cox speaks with business owners at the Fresno Chamber's Eggs and Issues Breakfast in March 2019. Photo by Gabriel Dillard

Former Central Valley Congressman TJ Cox, who faces federal fraud charges, filed for Chapter 7 bankruptcy protection last week.

Cox represented California’s 21st congressional district from 2019 to 2021. 

The charges stem from business dealings in 2018 before he was elected for Congress. 

In August 2022, the FBI arrested Cox on allegations of 15 counts of wire fraud, 11 counts of money laundering, one count of institutional fraud and one count of campaign contribution fraud, as well as stealing $1.7 million in loans and diverted payments. Cox pleaded not guilty and was later released on bail. 

According to the San Joaquin Valley Sun, Cox and federal prosecutors couldn’t agree to a plea deal on Sept. 25. The next hearing is scheduled for Dec. 11, and if an agreement isn’t reached, Cox could go on trial. 

Less than one month after making his first appearance in federal court, Cox filed for Chapter 7 bankruptcy on Oct. 11. He reported assets worth $766,385.23 and debt liabilities of nearly $2.5 million.

Cox’s biggest asset is his home in Old Fig Garden, currently worth $742,206. However, it needs plumbing and a new roof, which would cost $100,462 to fix, according to the bankruptcy filing.

Cox and co-debtor, spouse Kathleen Murphy, also reported three vehicles as property — a Tesla Model 3 with body damage and a dead battery, a 2014 Honda Odyssey with a dented door and a 2000 Dodge Durango with the parking brake permanently engaged, according to court documents.

Cox also reported financial interest in six corporations or partnerships, including 100% of ownership in Troy Equipment Leasing LLC, CMASS Management Inc., and MJTJ, LLC.

Troy Equipment Leasing is linked to a gold mining firm in Canada. The company counted as assets $1,000 worth of scrap metal located in Canada. Its liabilities, in addition to a $8,355 state tax bill, are $550,000 owed to Edward Tang, Robert Tang and Virginia Tsai — reportedly local investors of the business.

Among Cox’s creditors with the largest unsecured claims include Mike and Norma Childers of Reno, Nevada, with $411,040 in business debt; and Harris Bank NA with $477,784 in business debt.

Cox lists his occupation as development officer for The LEAP Institute in Huron as of May 2023. Complete with his spouse’s income as a pediatric physician, the pair earn more than $25,600 each month.