Maryland childcare center owner charged for allegedly stealing more than $2.5 million in benefits fraud scheme
The owner of multiple Baltimore City childcare centers has been charged with stealing more than $2.5 million from the state of Maryland in a fraud scheme.
The fraud occurred between 2014 and 2024, according to the attorney general's office.
According to the AG's office, Jonathan Smalls, owned and operated the Habbakuk Outreach Ministries, House of New Beginnings, and It'z a Brighter Learning Center, childcare centers.
After the Maryland State Department of Education (MSDE) revoked Small's childcare certificate of registration and refused to license any of his facilities, officials said Small assumed multiple false identities to continue receiving state payments.
Small also submitted falsified attendance records to claim larger state payments, the AG alleges.
"Defrauding childcare and public assistance programs directly harms the families who rely on them most," Attorney General Anthony Brown said. "My Office will pursue those who exploit these essential services and hold them accountable."
On Feb. 6, 2018, one of Small's facilities invoiced the state for 51 children who had all been marked present with no absences. However, a visit from the MSDE on the same day found that only 12 children were in attendance.
On Oct. 23, 2023, another facility secretly controlled by smalls billed the state for more than 20 children, but an MSDE site visit revealed the facility was closed with no children present, the AG said.
According to a second indictment, Smalls moved to Pennsylvania but continued to receive medical assistance and SNAP benefits from Maryland by falsifying his address and income between 2016 and 2024.
The state said Smalls only reported an income of $1,000 per month when his income was significantly higher. The AG also said Smalls was not living a lifestyle consistent with making $1,000 a month, as he allegedly owned properties in Florida and Pennsylvania, and two Bentley motor vehicles.
The trial for the case will take place in the Circuit Court for Anne Arundel County. A status conference will take place on March 28, 2025.
