Former Baltimore Coach Sentenced to Federal Prison for Overtime Fraud and Tax Evasion

A former Baltimore City School police officer and high school football coach has been sentenced to federal prison for orchestrating a scheme that defrauded his employer out of more than $200,000 in overtime pay for hours he never worked, while also evading over $60,000 in federal income taxes. The sentencing, announced by the U.S. Attorney’s Office for the District of Maryland, concludes a case involving wire fraud and tax evasion charges against Lawrence Earl Smith Jr., 52, of Perry Hall, Maryland.

U.S. District Judge Stephanie A. Gallagher handed down a sentence of one year and one day in prison, to be followed by three years of supervised release. Smith’s fraudulent activities spanned from January 2019 to August 2022, during which he submitted over 3,330 fraudulent overtime slips. These claims were made for time he was not performing his duties, often while he was reportedly at his home, on his boat, or traveling out of state to destinations including Las Vegas, Florida, and the Caribbean. During this period, Smith was employed by the Baltimore City School Police Department from May 2005 until his departure in August 2022. His authorized overtime duties during the COVID-19 pandemic included providing security for testing and food sites and assisting the Baltimore Police Department (BPD) with investigations and emergency responses outside of regular hours.

In addition to the overtime fraud, Smith also engaged in tax evasion for the years 2017, 2019, and 2020. Court documents indicate that he falsely claimed tax-exempt status and failed to file state and federal income tax returns. Furthermore, he manipulated his employer into not withholding payroll taxes by submitting false W-4 forms, while his income remained unreported. This deliberate action led to a tax liability of $61,233.40 owed to the Internal Revenue Service (IRS). The investigation was a collaborative effort involving the Federal Bureau of Investigation (FBI) and the IRS Criminal Investigation (IRS-CI), with significant assistance provided by the Maryland Office of the Inspector General for Education.

Residents in the District of Maryland should be aware that public service positions are held to high ethical standards, and violations can result in severe legal consequences, including lengthy prison sentences and financial penalties. The prosecution of such cases aims to uphold the integrity of public institutions and ensure accountability for those who misuse their positions for personal gain. For those who suspect fraud or waste of public funds, resources are available to report such activities.

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

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