The U.S Department of Justice charged Rep. Sheila Cherfilus-McCormick (D-Fla.) with stealing $5 million in FEMA fundsnd using some of it to fund her campaign to support her 2021 Congressional campaign. The FBI Miami office and the IRS-CI Florida Field Office are involved in the investigation.
Federal prosecutors allege that Cherfilus-McCormick and her brother, Edwin Cherfilus, of Miramar, Fla., received an overpayment of $5 million in FEMA funds in July 2021, while their health care company, Trinity Health Care Services, of which she served as CEO, was working on a FEMA-funded staffing contract tied to COVID vaccinations.
According to the Nov. 19 indictment, instead of returning the funds to FEMA, the congresswoman and her brother conspired to steal the money and route it through multiple accounts to disguise the source. Cherfilus-McCormick was first elected in a January 2022 special election to succeed the late Rep. Alcee Hastings. The congresswoman denies the allegations.
A staffer for Cherfilus-McCormick, Nadege Leblanc, allegedly arranged additional contributions through straw donors and funneling cash grants from the FEMA-funded COVID contract to friends and relatives, who in turn donated to the 2021 campaign as if they were using their own money, according to the DOJ.
Meanwhile, David K. Spencer, Cherfilus-McCormick's 2021 tax preparer, was also indicted for conspiring to file a false federal tax return.
Prosecutors accuse all defendants of falsely claiming political and other personal expenditures as business deductions and inflated charitable contributions to reduce the Democrat congresswoman's tax obligations.
“Using disaster relief funds for self-enrichment is a particularly selfish, cynical crime,” said Attorney General Pamela Bondi.
“No one is above the law, least of all powerful people who rob taxpayers for personal gain. We will follow the facts in this case and deliver justice,” she added.
U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida stated, “Today’s indictment shows no one is above the law. This indictment reflects our Office’s commitment to follow the facts, apply the law, and protect the American taxpayer. Public money belongs to the American people. When FEMA funds are diverted for personal or political gain, it erodes trust and harms us all. We will continue to work with our law enforcement partners to ensure that American taxpayer dollars are used as intended and that the public’s trust is safeguarded.”
The Foundation for Accountability and Civic Trust, a conservative nonprofit, referred Cherfilus-McCormick to the Justice Department over the alleged overpayment in July, after the House Ethics Committee found “probable cause” of misconduct.
Last year, Florida’s emergency management division sued Trinity Health Care Services for overbilling during the pandemic, but the case was dismissed after the state reached an agreement in mediation with the congresswoman's company. The Florida Democrat has faced further scrutiny from the Office of Congressional Ethics, which found earlier this year that she may have violated ethics rules by requesting earmarks for her company.
Cherfilus-McCormick could face 53 years in prison if convicted, but as a first-time offender, she is likely to receive a lesser sentence, while her brother could serve up to 35 years in prison. She is currently facing a primary challenge from Elijah Manley, who has attacked her record and alleged corruption.
Spencer and Leblanc respectively face up to 33 years and 10 years in prison.
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