Florida Congresswoman Accused of Diverting $5 Million in Covid Relief to 2021 Campaign

A federal grand jury in Miami has indicted Rep. Sheila Cherfilus-McCormick, D-Fla., on charges that she and several associates stole $5 million in federal Covid-19 disaster funds and funneled part of the money into her successful 2021 campaign for Florida’s 20th Congressional District.

The indictment, unsealed Wednesday, alleges that Cherfilus-McCormick, 45, her brother Edwin Cherfilus and two other defendants orchestrated a scheme to conceal the origin of a $5 million overpayment made by the Federal Emergency Management Agency to a family-owned health-care company. The company had been hired to provide vaccination staffing during the pandemic, according to the U.S. Department of Justice.

Prosecutors say the overpayment, received in July 2021, was moved through a series of bank accounts to disguise its source. Investigators contend that some of the funds were later routed back to the congresswoman’s special-election campaign through so-called “straw donors” — relatives and friends who made contributions with money supplied by the defendants.

Cherfilus-McCormick faces counts of wire fraud, money laundering, conspiracy and filing a false tax return. If convicted on all charges, she could receive a maximum sentence of 53 years in prison, though federal guidelines typically result in significantly shorter terms. Her brother could face up to 35 years, campaign treasurer Nadege Leblanc up to 10 years and tax preparer David Spencer up to 33 years.

Alleged misuse of FEMA funds

The indictment states that the family company mistakenly received the $5 million payment from FEMA, which reimbursed contractors working on Covid vaccination efforts. Rather than reporting the surplus, the document claims, the defendants began moving the money through multiple corporate and personal accounts to hide its federal origin.

Investigators allege that a portion of the money was distributed to individuals who then donated it back to Cherfilus-McCormick’s campaign between July and October 2021. The strategy, prosecutors say, was intended to inflate her fundraising totals while distancing the campaign from the original FEMA payment.

In addition to the campaign-finance allegations, prosecutors accuse Cherfilus-McCormick and Spencer of claiming personal and political expenditures as business deductions on her 2021 tax return and overstating charitable contributions to lower her tax liability.

Response from prosecutors and defense

Acting on the grand jury’s findings, federal agents arrested the defendants Wednesday morning. In a statement released by the Department of Justice, Attorney General Pam Bondi called the alleged diversion of disaster funds “a particularly selfish, cynical crime” and emphasized that public officials would be held accountable for misusing taxpayer money.

Attorneys representing Cherfilus-McCormick — David Oscar Markus, Margot Moss and Melissa Madrigal — said in a joint statement that the congresswoman “is a committed public servant” and that they intend to “fight to clear her good name.” A spokesperson for her Washington office did not respond to additional questions.

Background on Cherfilus-McCormick

Cherfilus-McCormick entered the U.S. House of Representatives in January 2022 after winning a special election to fill the seat of the late Rep. Alcee Hastings, also a Democrat. Prior to her election, she served as chief executive of the family’s health-care staffing firm, which operates in South Florida.

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The congresswoman has already been under scrutiny on Capitol Hill. In May 2024, the House Ethics Committee confirmed it was reviewing a referral from the Office of Congressional Conduct outlining several possible violations, including allegations that she sought federal community-project funding for a for-profit entity.

Potential consequences

Although the indictment details maximum sentences totaling 53 years for Cherfilus-McCormick, sentencing in federal court often results in lesser terms, subject to judicial discretion and guidelines that weigh factors such as prior criminal history and acceptance of responsibility. The court may also order restitution if defendants are found to have profited from federal funds.

Her brother, Edwin Cherfilus, and the campaign treasurer, Nadege Leblanc, are charged with conspiracy and money-laundering counts tied to the alleged straw-donor operation. Tax preparer David Spencer faces charges related to preparing and filing the allegedly false 2021 tax return.

The defendants are expected to make their initial appearances in U.S. District Court for the Southern District of Florida later this week. The court will consider conditions of release and schedule future hearings. No trial date has been set.

A conviction could trigger additional consequences beyond any prison term. Under House rules, a representative sentenced to two or more years on a felony may face expulsion by a two-thirds vote of the chamber. Separately, federal law bars individuals convicted of certain fraud-related offenses from holding federal contracts or receiving future disaster assistance.

The case will proceed under the supervision of U.S. District Judge Beth Bloom. The prosecution is being handled by the DOJ’s Public Integrity Section and the U.S. Attorney’s Office for the Southern District of Florida.

Crédito da imagem: South Florida Sun-Sentinel | Tribune News Service | Getty Images