Former Maryland state employee and contractor sentenced in prison fraud scheme

BALTIMORE, MD—A former Maryland state employee and a general contractor have been sentenced for their roles in a multi-year scheme to rig government contracts at state correctional facilities.

Attorney General Anthony G. Brown announced the sentencing of Martin K. Obi, 59, and Joseph Chimah, 67, in the Baltimore County Circuit Court. The duo previously pleaded guilty to procurement fraud for steering maintenance and repair contracts toward Chimah’s company, First Potomac Environmental Corporation.

The Fraudulent Bidding Scheme

Between 2018 and 2022, Obi—then an employee of the Maryland Department of Public Safety and Correctional Services (DPSCS)—conspired with Chimah to manipulate the bidding process for at least eight state contracts. These projects included duct cleaning, painting, and sidewalk repairs at state prisons.

The scheme functioned through a series of “shadow” bids:

  • Chimah submitted fraudulent bids that appeared to come from competitors but were priced higher than First Potomac’s.
  • Obi used these fake, uncompetitive bids to justify recommending First Potomac for the work.
  • The state ultimately paid First Potomac $51,224 for contracts obtained through this deception.

In a “quid pro quo” arrangement, Chimah assisted Obi in obtaining fraudulent insurance payouts by falsely claiming that First Potomac had performed repair work on Obi’s private properties in Baltimore County.

Sentences Handed Down

The two men appeared before different judges in the Baltimore County Circuit Court to receive their penalties:…

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