The Department of Homeland Security (DHS) has suspended former Rep. Sheila Cherfilus-McCormick, D-Fla., and her family, associates, and businesses from future federal funding after she was indicted for allegedly misappropriating $5.7 million in taxpayer dollars.
DHS general counsel James Percival stated that Cherfilus-McCormick “abused Americans’ trust in the most egregious way” by manipulating the COVID-19 crisis to divert over $5 million in FEMA relief funds to herself and her relatives.
Barred individuals include her brother, Edwin Cherfilus; her sister, Marjorie Cherfilus; parents Gabriel and Marie Smith; her former chief of staff, Nadege Leblanc; and tax preparer, David Spencer.
“This is outright fraud,” Percival emphasized. “A federal grand jury and the US House of Representatives found this to be the case. I am proud that my office is taking the first step to ensure accountability and protect American taxpayers’ money.”
A Miami federal grand jury indicted the former congresswoman in November. The allegations suggest she used most of the misappropriated funds to finance her 2021 congressional campaign in Florida’s 20th District.
🇺🇸DHS BANS EX-CONGRESSWOMAN FROM FEDERAL FUNDS OVER FEMA FRAUD CASE
Federal officials moved to cut off money to Sheila Cherfilus-McCormick along with her family, aides, and linked businesses.
Prosecutors say she funneled over $5 million in COVID relief funds through multiple… pic.twitter.com/8lOlkI3ssP
— NewsForce (@Newsforce) May 1, 2026
Prosecutors allege that Cherfilus-McCormick and Edwin Cherfilus moved the $5 million through various accounts to hide its origin. Furthermore, Leblanc is accused of facilitating money into the campaign through “straw donor contributions” made under others’ names.
Spencer allegedly submitted a tax return that inaccurately categorized personal expenses or political spending as business deductions and inflated charitable donations.
If convicted, Cherfilus-McCormick could face up to 53 years in prison. Edwin Cherfilus could receive up to 35 years, while Leblanc and Spencer may face up to 10 and 33 years, respectively, according to reports.
The former lawmaker resigned from Congress on April 21, just minutes before the House Ethics Committee was set to decide on potential censure or expulsion over serious ethics violations related to the FEMA funds.
The FEMA funds were associated with Florida’s Public Assistance program during a COVID vaccination initiative involving Cherfilus-McCormick’s family firm, Trinity Healthcare Service. Subsequently, Florida’s Division of Emergency Management sued Trinity for allegedly overcharging the state by over $5.7 million.
A January ethics report indicated that funds flowed to a consulting firm wholly owned by Cherfilus-McCormick from March 2021 to October 2022, when it was voluntarily dissolved. Investigators found that at least $3.6 million ultimately reached her campaign.
The suspended entities include LLCs related to Marjorie Cherfilus’ MC Nursing Journey Consulting Firm, Leblanc’s Finance & Fitness Consulting, and Spencer’s tax and consulting firm.
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Trinity has agreed to a settlement to repay more than $5.6 million to the state over the next 15 years. Cherfilus-McCormick is set to stand trial in February 2027.
A DHS spokesperson noted that the suspension aligns with actions taken by the Trump administration’s fraud task force, led by Vice President JD Vance.
Cherfilus-McCormick’s attorney has not yet responded to requests for comments.
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