Former Maryland childcare center owner sentenced for stealing millions in scholarship funds

A former Maryland childcare center owner was sentenced to four years in prison for stealing millions in scholarship funds, according to the State Attorney General's Office. 

Jonathan Smalls, 42, of Pennsylvania, is currently serving time for an unrelated sentence, officials said. Once that sentence is complete, Smalls will serve an additional four years in prison, followed by five years of probation. He was also ordered to pay more than $2 million to the state of Maryland. 

In March 2025, Smalls pleaded guilty to a felony theft scheme and filing a false tax return. 

According to court documents, Smalls fraudulently obtained more than $2.5 million from the state between 2014 and 2024 by hiding his ownership of childcare centers and inflating attendance records. 

The fraud scheme began after the Maryland State Department of Education revoked Smalls' childcare certificate and refused to license and facilities where he was involved, according to court records. 

Smalls, in turn, falsified his residence and income to fraudulently receive benefits from the Supplemental Nutrition Assistance Program (SNAP) and the Maryland Medical Assistance Program, court records show. 

Though he lived in Pennsylvania, Smalls allegedly received Medical Assistance and SNAP benefits from Maryland by lying on his applications. He also significantly underreported his income to get the benefits. 

According to court records, Smalls' standard of living was inconsistent with his claimed income, as he owned two Bentley cars and properties in Kissimmee, Florida, and Lewisberry, Pennsylvania, according to court documents. 

"While Maryland families struggled to afford childcare, Jonathan Smalls was pocketing millions in scholarship payments, driving Bentleys, and owning properties in multiple states," Maryland Attorney General Brown said.