WATCH: Rep. Sheila Cervelos-McCormick responds to accusations of stealing $5 million in disaster funds

The Department of Justice announced a federal indictment charging U.S. Rep. Sheila Chervilus McCormick of Florida with stealing $5 million in federal disaster funds, laundering some of the money through unofficial donors to her congressional campaign, and then conspiring to file a false tax return.

Watch Cherfilus-McCormick’s remarks in the video player above.

Federal prosecutors accused the Democratic candidate of stealing Federal Emergency Management Agency overpayments that her family’s health care company received through a coronavirus vaccination employment contract. Chervilus McCormick has denied the accusations and has no plans to resign, according to a statement released by her chief of staff.

Read more: A former Newsom aide is accused of stealing campaign funds from the former health secretary

Chervilus McCormick’s statement read in part: “This is an unjust and baseless indictment, and I am innocent. The timing alone is curious and clearly intended to distract from more pressing national issues.” “I look forward to my day in court. Until then, I will continue to fight for my constituents.”

Here’s what you should know:

What’s in the indictment?

An indictment returned by a federal grand jury in Miami on Wednesday accuses Chervilus McCormick and several other defendants of conspiring to steal $5 million in overpayments to her family’s health care company, Trinity Healthcare Services, under a 2021 contract to sign up people for COVID-19 vaccines.

Prosecutors allege the money was distributed to various accounts, including friends and relatives who in turn donated to the campaign that led to her election to Congress. Prosecutors allege that a “substantial portion” of the embezzled funds was used for the campaign or “personal benefit” of Chervilus McCormick and other defendants.

How did you respond?

Chervilus McCormick maintains her innocence. She also said she has cooperated with “every legal request” and will continue to do so “until this matter is resolved,” according to a statement provided by her chief of staff.

“Congresswoman Chervilus McCormick is a committed public servant who is loyal to her constituents. We will fight to clear her good name,” her attorneys David Oscar Marcus, Margot Moss and Melissa Madrigal wrote.

Chervilus McCormick won a special election in January 2022 to represent Florida’s 20th District in parts of Broward and Palm Beach counties after the death of Rep. Alcee Hastings in 2021.

What about her seat in Congress?

House Minority Leader Hakeem Jeffries announced Thursday that while Chervilus McCormick intends to continue representing her South Florida district, she will step down from her position as ranking member of the Foreign Affairs Committee’s subcommittee on the Middle East and North Africa.

“Consistent with the Constitution of the United States, she is entitled to her day in court and the presumption of innocence,” Jeffries said in a statement, adding that the move to step down is consistent with the House Democratic Caucus rules.

U.S. Rep. Greg Steube, a Republican who represents parts of Sarasota and Charlotte counties in southwest Florida, on Thursday called for her resignation. If the congresswoman does not resign, Steube said he will introduce a resolution to expel her.

“Defrauding the federal government and disaster victims out of $5 million is an automatic disqualification from serving in elected office,” Steube posted on X.

The latest member of Congress to be expelled was scandal-plagued Rep. George Santos of New York. Santos had not yet been convicted on federal charges, and House Speaker Mike Johnson voted against it at the time, expressing concern about setting a precedent of expelling members based on allegations that have not been prosecuted.

What did previous investigations find?

In December 2024, a Florida agency filed a lawsuit against Trinity Healthcare Services, saying the Cherfilus-McCormick family-owned company had overcharged the state nearly $5.8 million for work done during the pandemic and would not return the money.

The Florida Department of Emergency Management said it discovered the problem after one $5 million overpayment attracted attention. Cherfilus-McCormick was Trinity’s CEO at the time.

The House Ethics Committee voted unanimously in July to reauthorize an investigative subcommittee to examine the allegations involving the congressman.

Chervilus McCormick’s income in 2021 was more than $6 million higher than it was in 2020, driven by nearly $5.75 million in consulting and profit-sharing fees received from Trinity Healthcare Services, the Office of Congressional Ethics said in a January report.

The indictment accuses Cherfilus-McCormick and her 2021 tax preparer of conspiring to file a false federal tax return by falsely claiming political spending and other personal expenses as business deductions and inflated charitable contributions.

Kate Payne is a corps member for the Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues.