A Baltimore childcare center owner has been indicted on multiple charges related to a large-scale fraud scheme that allegedly defrauded the State of Maryland of more than $2.5 million. Jonathan Tarrell Smalls, 41, is accused of falsifying records, assuming false identities, and fraudulently obtaining public assistance benefits over the course of a decade. The charges, announced by Maryland Attorney General Anthony G. Brown, stem from a grand jury indictment in Anne Arundel County.
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According to prosecutors, Smalls operated multiple childcare centers, including Habakkuk Outreach Ministries, House of New Beginnings, and It’z A Brighter Learning Center, despite his childcare license being revoked by the Maryland State Department of Education (MSDE). To continue receiving state payments meant for licensed providers, Smalls allegedly concealed his involvement in the businesses and manipulated attendance records. Authorities say he routinely billed the state for children who were not actually present. One example cited in the indictment notes that on February 6, 2018, Smalls’s facility invoiced the state for 51 children, but an MSDE inspection that same day found only 12 in attendance. Another alleged incident occurred in 2023, when a facility under Smalls’s control billed the state for over 20 children despite being closed at the time.
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In addition to the childcare fraud, Smalls is accused of fraudulently receiving public assistance benefits between 2016 and 2024. Prosecutors allege that he moved to Pennsylvania while continuing to receive Maryland Supplemental Nutrition Assistance Program (SNAP) and Medical Assistance benefits by providing false residency and income information. Although he claimed an income of only $1,000 per month, authorities say his actual earnings were significantly higher, and he owned properties in Florida and Pennsylvania, along with two Bentley vehicles.
The case will be prosecuted in the Circuit Court for Anne Arundel County, with a status conference scheduled for March 28, 2025. Attorney General Brown emphasized the importance of protecting public funds and ensuring accountability for those who exploit state programs. Officials from the Maryland State Department of Education echoed this sentiment, reaffirming their commitment to upholding integrity in the childcare sector.
Article by multiple RFHC contributors.
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