In 2016, Ombudsman
Conchita Carpio-Morales found Umali guilty on four counts of graft and three counts of malversation for the alleged misuse of his
PDAF in 2005. Umali's P15-million PDAF was meant to buy irrigation pumps and fertilizers for his constituents in
Laur,
Gabaldon,
Bongabon,
Santa Rosa,
General Mamerto Natividad, and
Cabanatuan. To do this, Umali downloaded millions to his NGO partners – P12 million ($240,975) to the Masaganang Ani para sa Magsasaka Foundation Incorporated (MAMFI) and P3 million ($60,244) to Samahan. Umali made it appear that the funds were used to purchase 7,920 bottles of liquid fertilizers and 15 irrigation pumps however, there was no real purchase at all since the liquid fertilizers had been sourced from another company of
Janet Lim-Napoles, Nutrigrowth Philippines. Umali was then dismissed and bared on holding any public office. In 2020, the case against him were dismissed by the Sandiganbayan Second Division due to the violation of his right to speedy disposition of cases. In 2024, the office of Ombudsman
Samuel Martires in a five-page
Order dated May 10, directed the six months preventive
suspension without pay of Umali. It also directed
DILG Secretary
Benhur Abalos to implement the “immediately executory” suspension, which originated from a
complaint of Roberto Duldulao regarding the alleged issuance of 205 permits for sand and gravel extraction to illegal quarries in
Nueva Ecija in violation of Republic Act 7942 or the Philippine Mining Act. His wife, former Governor Czarina Umali and Provincial Environment and Natural Resources Office officer Wilfredo Pangilinan were also named as
defendants for violation of R.A. 3019, the Anti-Graft statute. Umali filed a
Certiorari Petition with the
Court of Appeals of the Philippiness 11th Division. The Court subsequently granted his appeal for a 60-day temporary
restraining order on 22 May, hours after the suspension was served. On August 16, 2025, the Ombudsman imposed a one-year suspension on Umali as governor for issuing quarry permits without clearance from the
Department of Environment and Natural Resources. ==Personal life==