Maryland Procurement Fraud: State Employee, Contractor Plead Guilty in Prison Contract Scheme

A former Maryland state employee and a government contractor have pleaded guilty to felony procurement fraud. The scheme involved rigging public contracts for work at state correctional facilities. The pleas were entered in Baltimore County Circuit Court.Maryland Attorney General Anthony G. Brown announced the convictions. He stated the case reaffirms a commitment to prosecuting corruption. The scheme exploited the state’s bidding process for cleaning and repair work.

How the Fraudulent Bidding Process Worked

Martin K. Obi, a former DPSCS employee, and Joseph Chimah, a contractor, collaborated from 2018 to 2022. According to the Attorney General’s office, Chimah submitted fake competing bids. These bids were intentionally higher than his own company’s offer.Obi, in his official role, then recommended awarding contracts to Chimah’s company, First Potomac Environmental Corporation. This made it appear First Potomac was the lowest responsible bidder. The state paid over $51,000 for the specific contracts awarded through this fraudulent process.

Broader Impact on Public Trust and State Funds

The case highlights vulnerabilities in government procurement systems. Such schemes ultimately waste taxpayer money and undermine fair competition. Attorney General Brown emphasized that such actions betray public trust.The convictions send a strong message to other government employees and contractors. The investigation involved multiple agencies, including the Maryland State Police. This shows a coordinated effort to root out public corruption.

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The guilty pleas in this Maryland procurement fraud case conclude a significant state investigation. Both individuals now await sentencing for their roles in the scheme. This outcome reinforces the legal consequences for corrupt activities involving public funds.

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Who was involved in the Maryland contract fraud scheme?

A former state employee, Martin K. Obi, and a government contractor, Joseph Chimah, were involved. Obi worked for the Department of Public Safety and Correctional Services. Chimah is the owner of First Potomac Environmental Corporation.

What was the specific fraud they committed?

They committed procurement fraud by rigging the public contract bidding process. Chimah created fake, higher bids from non-existent competitors. Obi then used these to steer contracts to Chimah’s company.

How much money did the state lose?

The state paid $51,224 for the contracts directly awarded through the fraudulent bids. In total, First Potomac has received over $375,000 from the State of Maryland for work at DPSCS facilities since 2012.

What other charges did the former employee face?

Martin K. Obi also pleaded guilty to two counts of income tax fraud. These charges were related to claiming expenses for a fictitious business. This was separate from the procurement scheme.

When are the sentencings scheduled?

Joseph Chimah is scheduled for sentencing on October 31, 2025. Martin K. Obi is scheduled for sentencing on February 10, 2026. Both will be sentenced in Baltimore County Circuit Court.