Congresswoman Sheila Cherfilus-McCormick's former company settled a lawsuit with the Department of Emergency Management, according to records WPTV obtained from a public records request.
The state agency accused Trinity Health Care Services, then run by the congresswoman, of accepting overpayments from the state for providing resources during the COVID-19 pandemic. Notably, the alleged overpayments, totaling about $5.7 million, are similar to the amount her consultant company gained in revenue.
WATCH: Trinity Health Care Services to pay back state
Rep. Cherfilus-McCormick (D) is under federal ethics investigation over allegations she exceeded the legal limit by spending more than $2,500 of her own money on her campaign.
It alleges the company she owned, SCM Consulting Group, payed more than $250,000 to a state political action committee called Leadership in Action. Then the group, which was governed by her campaign manager, Mark Goodrich, paid him for campaign spending.
The settlement shows Trinity Health Care Services will pay back the state on an installment plan over the next 19 years. The company will have to pay around $350,000 each year to the department over the time period, with the first two payments worth $50,000. According to the settlement, neither party will admit wrongdoing or liability and each party will pay their own attorneys.
Trinity Health Care Services, now controlled by the congresswoman’s family, didn’t respond to WPTV’s request for comment. Congresswoman Sheila Cherfilus-McCormick’s office didn’t respond to WPTV’s multiple requests for comment over the course of months.
Peter Loge, who is the director at George Washington University’s Project on Ethics in Political Communication, said the settlement agreement makes it easy for voters to assume the company didn’t have the money. He also said it’s a reasonable for voters to think the congresswoman pocketed the $5.7 million since it’s similar to the amount her consulting firm made, according to congressional investigators.
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'Probable cause' found in ethics investigation of this lawmaker
“This is such an easy story to tell,” Loge told WPTV’s Ethan Stein. “It says very bad things and it leads people to doubt the honesty of their politicians.”
He also said the silence decreases people’s trust overall in government.
“This clearly gives the impression she’s corrupt and has got something to hide and whether or not she has something to hide, that impression is bad,” Loge said. “It’s bad for her politically, potentially. But it’s also really bad for democracy. Americans have a healthy skepticism of their elected officials and a healthy skepticism of power. This is risking turning to cynicism and cynicism is unhealthy and dangerous.”
Congressional investigators announced in May they found "probable cause" that the South Florida lawmaker broke ethics and campaign finance laws. Investigators with the Office of Congressional Ethics found "substantial reason to believe" she sought money for a community project and directed it to a private business. Those investigators also recommended looking into allegations that she accepted campaign contributions linked to official actions.
Cherfilus-McCormick's office told WPTV then that congresswoman has done nothing wrong.
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