Former Maryland correctional employee, business owner sentenced for fraud scheme

A former employee with the Maryland Department of Public Safety and Correctional Services (DPSCS) and the owner of a contracting company were both sentenced for their involvement in a fraud scheme, according to the State Attorney General's Office. 

Former DPSCS employee Martin K. Obi, 59, was sentenced to three years of probation and ordered to pay what he owes in state taxes, the AG's office said. 

Owner of First Potomac Environmental Corporation, Joseph Chimah, 67, was sentenced to a year and a half of probation and ordered to pay a $5,000 fine and $21,774 in restitution, according to the AG's office. 

Both of them previously pleaded guilty to procurement fraud after they attempted to steer DPSCS contracts for maintenance and repairs to First Potomac. Obi also pleaded guilty to filing false income tax returns. 

According to the AG's office, Obi and Chimah engaged in the fraudulent contracting scheme between 2018 and 2022. They drove at least eight contracts for sidewalk repairs, duct cleaning and painting to First Potomac. 

Chimah submitted fraudulent bids to Obi, which appeared to come from competitors. The bids were priced higher than those from First Potomac. Obi then used the fraudulent bids to recommend contracts to First Potomac, according to court records. 

Chimah's company received $51,224 in state funds for contracts during the scheme, documents show. He then helped Obi obtain insurance payouts by submitting fraudulent documents to insurance companies in at least four claims, according to the AG's office. 

Court documents show that Chimah also falsely said First Potomac completed repair work on Obi's Baltimore County properties.