DHS blacklists Cherfilus-McCormick as fraud task force moves to cut funding
WASHINGTON, DC: The Department of Homeland Security (DHS) has officially suspended former Representative Sheila Cherfilus-McCormick (D-Fla), along with her family, business associates, and various entities, from receiving any future federal funding.
The move follows a massive federal indictment alleging the theft of $5.7 million in taxpayer money intended for emergency relief.
DHS General Counsel James Percival characterized the actions as a necessary step to protect public resources, stating that the former congresswoman "manipulated the COVID-19 crisis" to funnel millions in FEMA relief funds to herself and her relatives.
The suspension aligns with a broader crackdown by the administration’s fraud task force, chaired by Vice President JD Vance.
Federal grand jury details elaborate scheme
The 47-year-old Democrat, who resigned from Congress on April 21 to avoid a near-certain censure or expulsion vote, is accused of orchestrating a complex money-laundering operation.
According to a Miami federal grand jury, Cherfilus-McCormick and her brother, Edwin Cherfilus, funneled $5 million through multiple accounts to hide the source of the cash.
Prosecutors allege that the vast majority of these stolen funds, at least $3.6 million, were used to finance her 2021 House campaign for Florida’s 20th District.
The scheme reportedly involved "straw donor contributions" made in the names of friends and relatives, assisted by her former chief of staff, Nadege Leblanc.
Additionally, tax preparer David Spencer allegedly filed fraudulent returns to mask political and personal spending as business deductions.
Pandemic relief contracts under investigation
The stolen funds originated from Florida’s Public Assistance program, a COVID-19 vaccination effort that contracted with Trinity Healthcare Service, a firm owned by Cherfilus-McCormick’s family.
Florida’s Division of Emergency Management (FDEM) eventually sued the firm for overcharging the state by millions.
A House ethics report determined that the money flowed into a consulting firm wholly owned by the former representative before being distributed to family members and associated LLCs.
As part of a December 2024 settlement, Trinity Healthcare agreed to repay more than $5.6 million over the next 15 years, though criminal accountability remains the focus for federal prosecutors.
Massive prison sentences loom for defendants
The DHS blacklist extends to the former representative's brother, sister, parents, and several consulting firms tied to the group.
Percival emphasized that the office is dedicated to ensuring taxpayers are protected from further misuse of funds, citing the 25 ethics violations found by a House subcommittee earlier this year.
Cherfilus-McCormick currently faces up to 53 years in prison if convicted of all charges in her upcoming February 2027 trial.
Her co-defendants also face significant prison time, with Edwin Cherfilus facing up to 35 years and Spencer facing up to 33 years for their alleged roles in the fraud.
