Federal prosecutors need to investigate Hope Florida. Here’s why | Opinion

Federal prosecutors need to investigate Hope Florida. That should be utterly obvious by now.

But in case it’s not, a Miami Herald story Thursday spelled out potential criminal charges that could result from an investigation into the Hope Florida Foundation, which House lawmakers contend diverted $10 million in Medicaid settlement money into a political committee. Hope Florida is the signature get-off-of-welfare initiative for First Lady Casey DeSantis, who is rumored to be considering a run for governor after her husband is termed out.

According to four former federal prosecutors — from both sides of the political aisle — there’s enough evidence for the U.S. Department of Justice to launch an investigation. Up to eight charges, from theft of government funds to money laundering, could be on the table, they said, charges that can carry decades of prison time.

As a reminder, the controversy, which unfolded last month, focuses on Medicaid settlement money that was funneled through Hope Florida’s foundation and then into charities, with $8.5 million eventually making its way into a political committee that opposed the 2024 recreational marijuana ballot measure. The measure, which Gov. Ron DeSantis fought, failed last November. The political committee, Keep Florida Clean, was controlled by DeSantis’ then-chief of staff, James Uthmeier. DeSantis has since named him Florida’s attorney general.

During the legislative session, House Republican lawmakers launched their own follow-the-money investigation. It’s an important question, and lawmakers were right to investigate. If money meant for the state treasury went to a political cause instead, Floridians should know. And the money should be returned.

Of course, there was a big political element to the House investigation as well. It was another round in the inter-party feud between Florida Republicans and the governor while also potentially hobbling Casey DeSantis’ gubernatorial run.

The House probe abruptly ended last week, after several key players refused to testify — but not before we heard words like “subpoena” and “money-laundering” tossed around, something that never would have happened when DeSantis controlled the state Legislature. He’s a lame duck now, and it shows.

As leader of the House investigation, Rep. Alex Andrade, a Pensacola Republican who chairs the House Health Care Budget Subcommittee, had spent weeks digging through records over the foundation’s receipt of the $10 million as part of a $67 million legal settlement with Centene, a Medicaid managed-care company.

Andrade, who is a lawyer, said he remains “firmly convinced” of a conspiracy to commit money-laundering and wire fraud as well as a misuse of Medicaid funds. But he said that, “we as legislators will not be the ones making the ultimate charging decisions.” He told reporters that he has had “discussions” with the Justice Department about the transactions.

The DeSantis administration has defended the diversion of the $10 million, saying only $57 million of the original $67 million could be considered damages awarded to the state, which meant Centene could be directed to divert the remaining $10 million to the Hope Florida charity. That’s according to a letter sent to lawmakers by Agency for Health Care Administration General Counsel Andrew Sheeran.

DeSantis said of the letter, “It totally debunks the bogus media narratives that were out there.”

DeSantis has called the $10 million the “cherry on top” of the settlement. But, as the Herald reported, that contention runs counter to a move by his administration to reimburse the federal government its share of the settlement based on the full $67 million. Plus, Scott Newton, a former FBI agent and federal prosecutor, told the Herald that all of the money should be considered taxpayer money. In addition, a draft settlement agreement obtained by the Times/Herald said Centene owed the state $67 million for overbilling taxpayers — not $57 million.

It’s possible, as some have said — including our readers — that federal prosecutors may not touch this case. The DOJ is headed by Pam Bondi, after all, formerly Florida’s attorney general. And the state’s current attorney general is Uthmeier.

But we’re talking about $10 million here, not ten bucks. Andrade has said the U.S. Attorney’s Office for the Northern District of Florida should investigate. He’s right. Taxpayers deserve nothing less.

Click here to send the letter.