Former Baltimore City employee sentenced to 4 years for bribery, COVID-19 relief schemes
A former Baltimore City Department of Finance employee was sentenced to four years in federal prison in connection with a bribery scheme and fraud involving COVID-19 relief funds, according to the U.S. Attorney's Office.
Between 2016 and 2023, Joseph Gillespie, 35, engaged in a bribery scheme during which he abused his position in the Department of Finance for his personal gain, according to court records.
Court documents show Gillespie often accepted bribes from property owners in the city when their property was subject to financial obligations. The bribes were often 10% to 15% of what was owed to the city.
He accepted the bribes in exchange for removing the financial obligations, such as citations or tax and water payments.
Gillespie also accepted bribes to delay payment due dates, preventing the city from placing a lien on the property, according to court records.
Once he received the bribes, Gillespie would delete the financial obligation by changing the city's online records. He would then send photos of a cashier slip to show a payment was made when it wasn't, court records show.
Gillespie discussed the bribery scheme with an undercover FBI agent. During their correspondence, Gillespie extended the deadline for financial obligations on eight properties by three months. He asked for $800 in return and the agent provided the money, according to court documents.
Gillespie's bribery scheme continued for years and he admitted to having multiple co-conspirators in the scheme. He received more than $250,000 and caused the city to lose more than $1 million, according to a plea agreement.
Court documents show he also engaged in a fraud scheme involving COVID-19 CARES relief funds. The program offered forgivable loans to small businesses for expenses through the Paycheck Protection Program (PPP).
In 2021, Gillespie and his co-defendant, Ahmed Sary, submitted a fraudulent PPP loan application to obtain a loan for JAG Investments, which was owned by Sary, court records show.
The application had several misrepresentations, including the number of employees at the company and average monthly payroll. The application also included a fabricated IRS form.
The loan was approved and about $138,000 was sent to a bank account that Gillespie controlled. According to court documents, he agreed to pay Sary $38,000 for submitting the false application and getting the loan.
He also established payroll services so the company could later request that the loan be forgiven.
Multi-state fraud scheme
A Detroit man was recently sentenced to four years in prison for his role in an unemployment fraud scheme that impacted funds to help individuals in Maryland, Michigan and Pennsylvania.
According to CBS News Detroit, 49-year-old Tracey Dotson and a co-conspirator filed hundreds of false unemployment claims using Social Security numbers of individuals without their consent or knowledge.
The two received almost $1 million in Pandemic Unemployment Assistance funds. They used the funds to buy drugs, jewelry and designer fashion accessories and at least one vehicle and a firearm, court records show.
Dotson was ordered to pay $900,000 in restitution for the scheme.