A sitting Democratic member of Congress from Broward County, Sheila Cherfilus-McCormick, surrendered to federal authorities Tuesday in Miami amid explosive allegations that she orchestrated a scheme to steal and launder $5 million in FEMA COVID-19 disaster relief funds, and used a portion to bankroll her 2021 congressional campaign and purchase a luxury yellow diamond ring.
The 46-year-old Congresswoman appeared in Miami federal court in handcuffs following a 15-count federal indictment issued last week. She now faces charges including conspiracy, theft of government funds, money laundering, making and receiving straw-donor contributions, and filing false statements on her federal tax return.
According to the Department of Justice, prosecutors allege that Cherfilus-McCormick and her 51-year-old brother, Edwin Cherfilus, siphoned off $5,057,850 FEMA funds.
“The indictment alleges that the defendants conspired to steal that $5 million and routed it through multiple accounts to disguise its source. Prosecutors allege that a substantial portion of the misappropriated funds was used as candidate contributions to Cherfilus-McCormick’s 2021 congressional campaign and for the personal benefit of the defendants.
The indictment further alleges that Cherfilus-McCormick and Nadege Leblanc, 46, of Miramar, arranged additional contributions using straw donors, funneling other monies from the FEMA-funded Covid-19 contract to friends and relatives who then donated to the campaign as if using their own money.
The indictment also charges Cherfilus-McCormick and her 2021 tax preparer David K. Spencer, 41, of Davie, with conspiring to file a false federal tax return. According to the indictment, they falsely claimed political spending and other personal expenses as business deductions and inflated charitable contributions in order to reduce her tax obligations.”
According to the Miami Herald, the money trail reveals a stunning web of alleged financial abuse and deception:
- $2.4 million transferred into the bank account of Cherfilus-McCormick’s consulting company.
- $1.2 million routed to relatives.
- $830,000 moved into an account where the congresswoman was an authorized signer.
- $334,000 sent to a co-defendant, Nadege Leblanc, to orchestrate straw donor contributions.
- $190,000 transferred to a company associated with her brother, Edwin Cherfilus.
- $109,000 allegedly used to purchase the now-infamous 3.14-carat Fancy Yellow Diamond ring.
The indictment alleges that more than $1.14 million was then funneled into her campaign account in September and October 2021, just in time for her congressional race, funds prosecutors say were “illegally sourced and misrepresented” on campaign reports and tax returns.
Her co-defendants face serious consequences if convicted. Edwin Cherfilus faces up to 35 years in prison, while tax preparer David Kofi Spencer could face up to 33 years, and straw donor coordinator Nadege Leblanc up to 10 years.
More from the Miami Herald:
The congresswoman, who appeared in civilian clothes and was handcuffed at the wrists, responded briefly to a judge’s questions about the charges in the indictment and potential punishment if she’s convicted of any crimes.
Magistrate Judge Enjoliqué Lett set two bonds under an agreement between federal prosecutors and the defense team: a $25,000 personal surety bond and a separate $35,000 bond. Cherfilus-McCormick was expected to be released Tuesday afternoon after making a $1,750 down payment on the latter bond.
As a condition of bond, Cherfilus-McCormick had to surrender her personal passport but was allowed to retain her congressional passport.
However, she may only travel within the Southern District of Florida, the District of Columbia, the Eastern District of Virginia and the District of Maryland.
An arraignment was scheduled for Dec. 29.
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