Democratic Rep. Sheila Cherfilus-McCormick of Florida was indicted in federal court docket Wednesday for allegedly stealing thousands and thousands of {dollars} in federal emergency funds and routing a few of it to her marketing campaign account, the Justice Division stated in a assertion.
The Justice Division alleged that in 2021, a yr earlier than Cherfilus-McCormick was elected to Congress, a well being care firm that she ran was overpaid $5 million on a Federal Emergency Administration Company-funded contract associated to coronavirus vaccinations. The defendants within the case allegedly “conspired to steal” the cash by sending it by way of a number of accounts.
A few of that overpaid cash was then used to assist fund Cherfilus-McCormick’s marketing campaign to signify South Florida within the Home, the Justice Division alleged. Particularly, she was accused of funneling a few of the cash to family and friends members who donated it to her marketing campaign, in what’s often known as a “straw donor” scheme.
“Utilizing catastrophe aid funds for self-enrichment is a very egocentric, cynical crime,” Lawyer Basic Pam Bondi stated in a press release. “Nobody is above the regulation, least of all highly effective individuals who rob taxpayers for private acquire. We’ll observe the details on this case and ship justice.”
The Justice Division’s assertion didn’t specify the costs towards Cherfilus-McCormick or every other defendants. An indictment for Cherfilus-McCormick was not posted on the federal court docket database as of Wednesday night.
J. Scott Applewhite / AP
“That is an unjust, baseless, sham indictment — and I’m harmless,” Cherfilus-McCormick stated in a press release supplied to CBS Information early Thursday morning. “The timing alone is curious and clearly meant to distract from way more urgent nationwide points. From day one, I’ve cooperated with each lawful request, and I’ll proceed to take action till this matter is resolved. I’m deeply grateful for the assist of my district, and I stay assured that the reality will prevail. I sit up for my day in court docket. Till then, I’ll proceed combating for my constituents.”
Cherfilus-McCormick’s authorized group stated in a press release the congresswoman “is a dedicated public servant, who is devoted to her constituents. We’ll battle to clear her good identify.”
Home Minority Chief Hakeem Jeffries advised reporters late Wednesday that he would situation a press release on the prison costs after talking with Cherfilus-McCormick, however added: “She’s harmless till confirmed responsible.”
The congresswoman’s firm, Trinity Healthcare Providers, was additionally sued by emergency officers in Florida earlier this yr over an alleged multimillion-dollar overpayment.
The Florida Division of Emergency Administration stated it contracted with Trinity to signal folks up for COVID-19 vaccines. At one level, the corporate was unintentionally paid greater than $5 million moderately than $50,000 attributable to a “clerical error,” and the corporate “knowingly” processed the bill and refused to provide the cash again, the lawsuit says.
In response, Trinity stated in court docket papers that the state waited three years to tell the corporate concerning the overpayments. The corporate stated it advised the Florida Division of Emergency Administration it was keen to debate the dispute, however the company did not reply.
The state dropped the case final yr following mediation between the 2 events.
Cherfilus-McCormick has additionally confronted a Home Ethics Committee probe, after the Workplace of Congressional Ethics stated final yr she might have “requested group venture funding that may be directed to a for-profit entity.”
