Former Maryland corrections employee, business owner plead guilty to fraud scheme

A former employee with the Maryland Department of Public Safety and Correctional Services (DPSCS) and a business owner both pleaded guilty this week to procurement fraud, according to Attorney General Anthony Brown.

It comes after a scheme that resulted in public contracts being awarded to First Potomac Environmental Corporation, owned by Joseph Chimah, the AG said. The contracts were for cleaning, maintenance and repair work at DPSCS facilities. 

Fraud Scheme 

According to the AG's office, Chimah and a former DPSCS employee, Martin Obi, engaged in a scheme to steer at least eight department contracts to First Potomac. 

The scheme took place between 2018 and 2022 and included contracts for sidewalk repairs, duct cleanings and painting. 

According to AG Brown, Chimah submitted fraudulent bids that appeared to be from competitors. Obi used the fake bids to recommend that the contracts be awarded to First Potomac as the company's bids were lower. 

In exchange for Obi's help, Chimah helped him get insurance payouts by making fraudulent claims related to properties owned by Obi and his family, the attorney general's office said. 

In at least four of the claims, Chimah falsely said First Potomac had completed and charged for repair work on the properties, according to the AG's office. 

First Potomac received more than $375,000 from the state for work done at DPSCS facilities since 2012, the AG's office said. Maryland paid the company $51,224 for contracts that were awarded under the fraud scheme. 

"Marylanders deserve to know their tax dollars are being spent honestly and efficiently, not used to line the pockets of corrupt state employees and government contractors," AG Brown said. "These guilty pleas send a clear message that our office will prosecute anyone who exploits government positions for personal gain."

Separately from the scheme, Obi also pleaded guilty to income tax fraud after claiming expenses related to a fake business, according to the AG's office. 

Obi is scheduled for sentencing on Feb. 10, 2026, and Chimah is scheduled to be sentenced on Oct. 31, court records show.