NEW: Trump Admin Takes Major Action Against Ex-Democrat Rep. Who Stole FEMA Funds

The Department of Homeland Security has suspended former Rep. Sheila Cherfilus-McCormick, D-Fla., along with her family members, associates and businesses from receiving future federal funds after she was indicted for allegedly stealing $5.7 million in taxpayer money.

DHS general counsel James Percival said Cherfilus-McCormick “abused Americans’ trust in the most egregious way” by having “manipulated the COVID-19 crisis to funnel over $5 million dollars of FEMA relief funds to her and her family members.”

Among those barred from future federal money are her brother, Edwin Cherfilus; her sister, Marjorie Cherfilus; her parents, Gabriel and Marie Smith; her former congressional chief of staff, Nadege Leblanc; and her tax preparer, David Spencer.

“This is outright fraud. That’s exactly what a federal grand jury and the US House of Representatives found,” Percival said. “I am proud that my office is taking the first step to ensure she is held accountable and American taxpayers’ money is protected from further misuse.”

A Miami federal grand jury indicted the then-congresswoman in November, alleging she used most of the money to bankroll her 2021 House 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 Cherfilus-McCormick and Edwin Cherfilus moved the $5 million through multiple accounts to conceal where it came from. They also claim Leblanc helped route money into the campaign through “straw donor contributions” made in the names of friends and relatives.

Spencer is accused of filing a tax return that falsely listed political spending or personal expenses as business deductions, while inflating claimed charitable donations.

Cherfilus-McCormick faces up to 53 years in prison if convicted on all counts. Edwin Cherfilus faces up to 35 years, Leblanc up to 10 years, and Spencer up to 33 years, according to the report.

The former lawmaker resigned from Congress on April 21, minutes before the House Ethics Committee was set to vote on whether to censure or potentially expel her. An adjudicatory subcommittee previously voted to find her “guilty” of at least 25 ethics violations tied to the FEMA funds after a rare public hearing on Capitol Hill.

The FEMA money was tied to Florida’s Public Assistance program during a COVID vaccination effort that contracted with Cherfilus-McCormick’s family firm, Trinity Healthcare Service. Florida’s Division of Emergency Management later sued Trinity, alleging the company overcharged the state by more than $5.7 million and failed to return the funds.

A January House ethics report said the money flowed to a consulting firm Sheila Cherfilus-McCormick “wholly owned” between March 2021 and October 2022, when it was voluntarily dissolved. Investigators said the funds then moved to Cherfilus-McCormick, family members and associated LLCs, with at least $3.6 million ultimately landing in her campaign.

The suspended entities include LLCs tied to Marjorie Cherfilus’ MC Nursing Journey Consulting Firm, Leblanc’s Finance & Fitness Consulting, and Spencer’s tax and consulting company.

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Trinity agreed in a Dec. 30, 2024, settlement to repay more than $5.6 million to the state over the next 15 years. Cherfilus-McCormick is scheduled to stand trial in February 2027.

A DHS representative said the suspension lines up with steps taken under the Trump administration’s fraud task force, chaired by Vice President JD Vance.

Cherfilus-McCormick’s lawyer did not immediately respond to a request for comment.

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