The crack investigative team at the FlashReport has uncovered documents (attached below for your perusal) showing that political upstart and congressional candidate, Terrance J. (“T.J.”) Cox, was 
sued for fraud in Texas before moving to California four years ago. Cox is the latest Democrat to challenge popular Republican Congressman George Radanovich in the Central Valley. However, unlike previous challengers, Cox has already lent his campaign more than $500,000. According to court records filed by Atkins Production Services, Inc. in Tarrant County, Texas, Cox “manipulated and cooked the books of his companies to fraudulently sell the businesses and fraudulently obtain an inflated price for the businesses.”
In addition to Cox, others named in the August 1, 2002 suit were T.J. Cox, Inc. and The Framing Solution, two companies owned by Cox while living in Texas. The suit was filed shortly after Cox moved to California and charged that Cox falsified records when he told the new owner his businesses were profitable and debt free.
However, those same court records show that after the transaction, the new owner learned that Cox exaggerated the profits he reported and withheld information regarding a lien held by another party.
The suit alleged that, “the inventory purchased by Plaintiff was encumbered by a lien held by Roy Welch (or his company). Mr. Welch did not release that lien prior to the sale and conveyance of the inventory to Plaintiff. Moreover, the existence of the lien was concealed by Defendants from Plaintiff.”
This damaging news for Cox is coming to light on the heels of new FEC reports made public earlier this week showing Cox’ campaign virtually out of cash with campaign debts totaling nearly $435,000. News of Cox’ legal problems and questionable business practice will undoubtedly be embarrassing to Cox and damaging to his campaign.
However, this revelation could also be equally embarrassing to the Fresno and Modesto Bee editorial boards who endorsed Cox last week. It raises serious questions about what the Bee editors knew about these legal issues and when they knew it. In their endorsement, the Bee editors called Cox a “candidate with an impressive private-sector resume.”
It appears that Cox and the Bee editors have some explaining to do.
October 19th, 2006 at 12:00 am
In this and similar stories of “being sued” or “investigated” it would always be helpful if the outcomes were noted. It is easy to bring a suit or initiate an investigation to impunge a condidate, but quite another thing to make a valid showing. I am certainly not defending Cox, but in fairness to candidates that I do support Paul Harvey’s sound-bite seems particulalrly relevant (“now you know the rest of the story”)