A state grand jury found that the DeSantis administration "misappropriated" $10 million in taxpayer money by diverting funds from a healthcare settlement into the non-profit Hope Florida Foundation, according to a report obtained by CBS News Miami.
The grand jury described the transfer as part of a "sophisticated scheme" to funnel state funds into political action committees and the Republican Party of Florida to defeat a 2024 ballot measure legalizing recreational marijuana, CBS News Miami reported Wednesday.
The $10 million was originally part of a $67 million settlement with healthcare giant Centene, which had overbilled Florida’s Healthy Kids program meant to insure underprivileged children. State officials altered the settlement terms shortly before the 2024 election, directing $10 million to Hope Florida, a charity linked to First Lady Casey DeSantis, while reducing the state's direct return to $57 million.
READ MORE: Florida Democratic chair calls on Ashley Moody to release grand jury report on Hope Florida
Within weeks, Hope Florida awarded $5 million grants to two separate non-profit organizations. Those groups subsequently transferred millions into Keep Florida Clean, a political action committee led by James Uthmeier, the Governor’s former Chief of Staff who currently serves as Florida Attorney General. He has said no wrongdoing occurred.
Despite finding the funds were used for political purposes, the grand jury reported there was insufficient evidence to bring criminal charges. Jurors noted that "nobody will take responsibility" or claim memory of who made the decision to divert the funds, presenting an obstacle to criminal prosecution.
"Despite our finding that the money was misappropriated, we find insufficient evidence to charge anyone criminally," the grand jury report noted. "Nobody will take responsibility for deciding the $10 million of taxpayer money would go to Hope Florida… or had any memory of who made it."
"We recognize that this would be an impediment to criminal prosecution," the grand jury report noted. "While we can't prove who is responsible, we can plainly see that taxpayer money was misused for political purposes and we would like to see changes made to prevent this from happening again."
Gov. Ron DeSantis has repeatedly dismissed allegations regarding the settlement as a "hoax," saying he was not involved in the agreement details.
"I wasn't involved in the settlement agreement, but I'm very happy with how everything was done," DeSantis said Wednesday when asked by reporters at unrelated press conference in Miami.
The grand jury, according to CBS News Miami, called on the Florida Legislature to pass strict transparency laws requiring all settlement funds to return directly to the state’s general fund to prevent similar diversions in the future.
CBS News Miami also reported that the grand jury concluded that then Attorney General Ashley Moody was aware of the plans to divert the $10 million to Hope Florida and "authorized" her former chief deputy, John Guard, to sign the settlement agreement. CBS4 Miami reported that Moody has not responded to questions about her role in the Hope Florida settlement agreement.
Moody was appointed last year to the U.S. Senate to fill the vacancy after Sen. Marco Rubio was tapped to become Secretary of State by President Trump.
Democrat Angie Nixon, who is running against Moody for the Senate seat in November, called on the senator to step down because she had "broken the public trust"
"Ashley Moody has proven she will sell out vulnerable Florida families if she thinks it gives her or her extremist friends more power," Nixon said in a statement following the CBS News Miami report. "She has broken the public trust, and she must resign immediately."
