Former State Official and Contractor Plead Guilty in Prison Procurement Fraud Scheme

BALTIMORE, MD – A former employee of the Maryland Department of Public Safety and Correctional Services (DPSCS) and the owner of a contracting company have both entered guilty pleas in connection with a fraudulent scheme involving state prison contracts. Martin K. Obi, a former DPSCS employee, and Joseph Chimah, owner of First Potomac Environmental Corporation, have admitted to felony procurement fraud in Baltimore County Circuit Court. Their convictions are the result of a scheme that involved manipulating public contracts awarded to First Potomac for services such as cleaning, maintenance, and repair work at correctional facilities.

The fraudulent activities, which spanned from 2018 to 2022, saw Obi and Chimah collaborate to steer at least eight DPSCS contracts to First Potomac. These contracts encompassed various projects, including sidewalk repairs, duct cleaning, and painting. The scheme involved Chimah submitting multiple falsified bids, purportedly from competing companies, which were intentionally inflated. Obi, in turn, utilized these fraudulent bids to justify recommending that the contracts be awarded to First Potomac, which had submitted comparatively lower bids. This manipulation ensured that First Potomac secured the contracts under deceptive pretenses.

In exchange for Obi’s complicity in steering contracts, Chimah facilitated fraudulent insurance payouts to Obi. These payouts were linked to insurance claims for properties owned by Obi or his family in Baltimore County. Chimah falsely certified that First Potomac had completed and billed for repair work on these properties in at least four separate insurance claims. Overall, First Potomac Environmental Corporation has received more than $375,000 from the State of Maryland for work at DPSCS facilities since around 2012. Of this total, $51,224 was paid under contracts that were secured through the fraudulent bidding process.

Beyond his role in the procurement scheme, Obi also pleaded guilty to two counts of income tax fraud. These charges relate to his claiming of expenses associated with a business that was fictitious.

Sentencing for Obi is scheduled before the Honorable Jan M. Alexander on February 10, 2026. Chimah is slated for sentencing by the Honorable Robert E. Cahill, Jr., on October 31, 2025. This case highlights the importance of ensuring that taxpayer money is used responsibly and without corruption. Residents of Maryland can expect ongoing efforts by the Attorney General’s office to investigate and prosecute such fraudulent activities.

Article by Mel Anara, based upon information from the Maryland Attorney General’s Office.

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