Organized Scheme to Defraud and Relief Program Fraud Charges in Florida

When a government relief program, grant or public contract comes under review, the questions can start with an audit or a request for records and end with a criminal investigation. In Florida, these cases are often charged as an organized scheme to defraud. Public officials, business owners, nonprofit leaders and employees who handled applications or payments can all end up in the middle of one.

This post explains, in general terms, what that charge means, how relief and grant program cases usually begin, who investigates and prosecutes them, and how an ethics complaint or ethics finding differs from a criminal charge. Every case is different. If you or a friend or family member has been contacted by an investigator, auditor or inspector general, Attorney Ron Frey, who has been practicing law for over two decades, can talk with you confidentially before you respond.

What an Organized Scheme to Defraud Charge Is

In Florida, many fraud cases are charged under Section 817.034, Florida Statutes, the Florida Communications Fraud Act. The statute defines a “scheme to defraud” as a systematic, ongoing course of conduct with intent to defraud, or with intent to obtain property by false or fraudulent pretenses, representations or promises.

The statute describes two main offenses:

• Organized fraud: engaging in a scheme to defraud and obtaining property through it. “Property” is defined broadly and can include money, rights, benefits and services.
• Communications fraud: communicating with someone, such as by mail, phone, email or an online application, in furtherance of a scheme to defraud with intent to obtain property. Each communication can be charged as a separate count.

The alleged value of what was obtained often affects how serious the charge is, and the statute allows values within one scheme to be added together. The law also has its own time limit for bringing charges. Depending on the facts, prosecutors may file related charges, such as theft, or, for a public servant, charges under Florida’s laws on bribery and misuse of public office. Our post on fraud and bribery charges in Florida covers bribery and the federal fraud statutes in more detail.

Laws change, and how a statute applies depends on the specific facts. Any situation should be evaluated case by case under the law in effect at the time.

How Relief and Grant Program Cases Usually Begin

Cases involving relief funds, grants and public contracts often start quietly, well before anyone is contacted. Common starting points include:

• Audits and program reviews. Each Florida state agency has an office of inspector general that conducts audits and investigations of the agency’s programs. When an inspector general has reasonable grounds to believe a criminal law was violated, Florida law requires a report to the Florida Department of Law Enforcement or another law enforcement agency.
• State financial investigators. The Florida Chief Financial Officer’s Office of Fiscal Integrity investigates allegations such as state contract and grant fraud and misuse of state funds.
• FDLE. FDLE’s Office of Executive Investigations includes a Public Corruption Unit that investigates allegations of criminal activity by public officials. When FDLE believes there is cause for prosecution, it refers the evidence to prosecutors.
• Local referrals. A city, county or nonprofit that ran a relief program may refer questions to its own auditors, to the local sheriff’s office or police department, or to state investigators.
• Complaints and tips. Applicants who were turned down, coworkers, vendors or whistleblowers sometimes raise concerns that lead to a review.
• Ethics referrals. The Florida Commission on Ethics reports its findings to a state attorney or other appropriate agency when a violation of criminal law is indicated.

When federal money is involved, federal agencies and inspectors general may also be involved. The first sign of an investigation is often a request for records, a subpoena, or a call from a detective or agent.

Who Investigates and Prosecutes These Cases

State charges are usually filed by the State Attorney’s Office in the circuit where the alleged conduct happened. When an alleged fraud spans two or more judicial circuits, or is connected to the internet, the Office of Statewide Prosecution in the Attorney General’s office may bring the case instead. Florida law directs the statewide prosecutor to use FDLE investigators whenever feasible.

Relief and grant programs are often paid for in whole or in part with federal money. When that is the case, the same conduct may be reviewed by federal agents and charged in federal court under laws such as wire fraud or 18 U.S.C. § 666, which addresses theft or bribery concerning programs that receive federal funds. In Tampa, federal cases are handled in the Middle District of Florida. A federal target letter is one way people learn they are part of a federal investigation.

Our post on who is prosecuting your case explains how to tell which office is involved.

An Ethics Finding Is Not a Criminal Charge

Public officials and public employees can face two very different kinds of proceedings over the same events: an ethics case and a criminal case. They are often confused, and the difference matters.

The ethics process. The Florida Commission on Ethics reviews possible violations of the state’s ethics laws by public officers, public employees and others covered by those laws. A case usually starts with a sworn complaint or a referral from the Governor, FDLE, a state attorney or a U.S. Attorney. The Commission decides whether the complaint is legally sufficient, investigates, and then decides whether there is probable cause to believe an ethics violation occurred. Under Florida law, the complaint and related records are generally confidential until the matter reaches certain stages, such as a probable cause decision or a dismissal.

What an ethics finding can lead to. According to the Commission, there are no criminal penalties for violating Florida’s Code of Ethics. Ethics penalties are administrative and civil. Depending on the person’s role, they can include public censure, removal or suspension from office, loss of employment, civil penalties and restitution, which the Commission recommends to the official or body with power to impose them.

What a criminal charge is. A criminal charge is filed by a prosecutor in criminal court, usually by an information or an indictment. It is decided under criminal law, with the protections of the criminal process, and it can carry criminal penalties.

How the two can overlap.

• A finding of probable cause by the Ethics Commission is not a criminal conviction and is not a criminal charge.
• An ethics complaint that is dismissed does not by itself prevent a criminal investigation, and a criminal case can move forward without any ethics finding.
• The two can run at the same time. Florida law pauses the Commission’s timeframes while a related criminal investigation or prosecution is pending.
• Information can move between the two. The Commission reports to a state attorney when a criminal violation is indicated, and state attorneys and FDLE can refer matters to the Commission.

Because what someone says in one proceeding may reach the other, it is wise to talk with a criminal defense lawyer before responding to an ethics investigator, not only to a police officer or agent.

Common Issues in These Cases

Relief and grant program cases usually turn on documents and on what people knew and intended. Issues that often come up include:

• Intent. A scheme to defraud requires intent to defraud. An error, a misunderstanding of eligibility rules or a sloppy application is not the same thing as a crime, although investigators may see it differently.
• Changing program rules. Emergency relief programs are often set up quickly, and eligibility rules, guidance and forms can change while the program is running. What the rules said at the time an application was submitted can matter.
• Who prepared the paperwork. Applications and reports are often prepared or submitted by staff, bookkeepers, consultants or accountants. Who wrote what, and who reviewed it, can be a central question.
• Records and accounting. Bank records, emails, invoices, approval chains and program files often tell a fuller story than any one document.
• Who benefited. Where the money went, and whether it was used for the purpose the program allowed, is often at the center of the case.
• Value. How investigators calculated the amount at issue can affect the charges.
• Repayment. Paying money back does not automatically end a criminal case. Our white collar and financial crimes page explains more.

For licensed professionals, a fraud allegation can also raise questions with a licensing board. See our page on professional license defense.

If You Are Contacted by Investigators

Being contacted by an auditor, inspector general, ethics investigator, detective or federal agent is a signal to get legal advice before you respond. In general:

• Talk to a lawyer before you talk to investigators. That includes informal calls and requests to “just clear things up.” Public employees and contractors may have duties to cooperate with an inspector general, which is one more reason to get advice before you respond.
• Preserve your records. Keep emails, texts, files, bank records and program documents just as they are. Talk to a lawyer before turning documents over or speaking with investigators about them.
• Be careful who you talk to. Conversations with coworkers, other people involved in the program, friends or on social media are not confidential and can become part of the case.
• Do not rely on the internet or AI for answers about your situation. General information, including this post, cannot account for the facts of your case. Our post on why AI is not your lawyer explains why.

How Attorney Ron Frey Can Help

Attorney Ron Frey has been practicing law for over two decades and defends people in Florida state court and in federal court. In a relief program, grant or public contract investigation, he can:

• Find out, where possible, what the investigation is about and which agencies and prosecutors are involved.
• Handle communication with investigators, auditors and prosecutors so you do not have to.
• Review the program rules, applications and records with you, and help preserve the documents that matter.
• Advise you on how an ethics complaint, an employment review or a licensing issue may affect a criminal case, and the reverse.
• Evaluate whether and how information should be presented to investigators or prosecutors, and when.

Every situation is evaluated case by case under current law. No lawyer can promise how an investigation or case will turn out.

FAQ

Is an ethics complaint the same as being charged with a crime?

No. An ethics complaint is handled by the Florida Commission on Ethics, which can recommend administrative and civil penalties. A criminal charge is filed by a prosecutor in criminal court.

Can an ethics case and a criminal case happen at the same time?

Yes. They are separate proceedings and can run at the same time, and information from one can be shared with the other. Talk with a lawyer before responding in either one.

Does a mistake on a grant or relief application mean I committed fraud?

Not by itself. A scheme to defraud requires intent to defraud. Whether the facts show a mistake or something more is a question to discuss with a lawyer before you talk to investigators.

Can a business owner who is not a public official be charged?

Yes. Florida’s scheme to defraud law applies to any person. Business owners, nonprofit leaders, employees and consultants involved in an application or program can be investigated.

Can a case be charged in both state and federal court?

It can, especially when a program used federal money or the alleged conduct crossed state lines or used interstate wires. Our post on federal prosecutors in Florida explains how federal cases are handled.

Should I answer an auditor’s or inspector general’s questions?

Talk to a lawyer first. Some people have duties to cooperate with an inspector general, and what you say can be shared with law enforcement. A lawyer can help you respond in the right way.

Talk With Attorney Ron Frey

A relief program review, an ethics complaint or a call from an investigator can feel overwhelming, especially when your job, your business or your public role is at stake. The earlier you get legal advice, the more options there may be. If you or a friend or family member is facing questions about a grant, relief program or public contract, call before you respond to investigators.

Call or text (813) 775-2276 for a free, confidential initial consultation by phone, video or in person.