Baltimore County Man Admits to Bribery and Defrauding COVID-19 Relief Programs

A Baltimore County man has pleaded guilty to bribing a former Baltimore City finance official and to fraudulently obtaining over $990,000 in COVID-19 relief funds, according to information from the U.S. Attorney’s Office for the District of Maryland. James Carroll Erny, Jr., 55, of Glen Arm, Maryland, acknowledged in federal court that he paid at least $25,000 in bribes to Joseph Gillespie, a former employee of the Baltimore City Department of Finance. In exchange for these payments, Gillespie reportedly extinguished various financial obligations that Erny owed to the City of Baltimore, resulting in losses to the city totaling more than $145,000.

The plea agreement details a bribery scheme that ran from December 2019 to August 2023. During this period, Erny, who owned at least eight properties in Baltimore City, allegedly made regular bribe payments to Gillespie. These payments were intended to delay, remove, or extinguish financial debts Erny owed to the city, including unpaid citations, tax obligations, and water bills. The methods of bribe payment described include cash, often delivered in envelopes of up to $1,000, with some exchanges occurring in a men’s bathroom within a city-owned building. Erny also reportedly utilized digital payment platforms like Cash App and Zelle for these transactions.

In addition to the bribery charges, Erny also admitted to a separate scheme involving the fraudulent acquisition of COVID-19 relief funds. He successfully obtained $996,240 through the Paycheck Protection Program (PPP) and made an attempt to secure over $100,000 in Economic Injury Disaster Loans (EIDL). These actions underscore a pattern of alleged illicit financial activity.

Erny faces a maximum penalty of 10 years in federal prison for the bribery offense. His sentencing is scheduled for June 9. Previously, in February 2025, Joseph Gillespie was sentenced to four years in prison for his involvement in a wire-fraud conspiracy related to these activities. The investigation and prosecution of this case were a collaborative effort involving the Federal Bureau of Investigation (FBI) – Baltimore Field Office, the Small Business Administration Office of Inspector General (SBA-OIG), and the Baltimore County Police Department (BCPD).

Article by Mel Anara, based upon information from the U.S. Attorney’s Office, District of Maryland

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