Former MD corrections employee sentenced for contracting fraud

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A former employee of the Maryland Department of Public Safety and Correctional Services was sentenced last week for a contracting fraud scheme in which he helped direct state money to a favored business.

Martin Obi, 59, was sentenced Feb. 10 to 15 years of incarceration, but won’t have to go to prison. Baltimore County Circuit Judge Jan Alexander suspended the prison term in favor of three years of probation.

Obi worked with Joseph Chimah, owner of First Potomac Environmental Corporation, to steer at least eight state contracts to First Potomac.

From 2018 to 2022, the state awarded contracts to the company totaling more than $51,000, according to a press release from the Maryland Office of the Attorney General. The contracts were for sidewalk repairs, duct cleaning and painting, among other purposes.

Chimah, 67, submitted fake contract bids appearing to come from other companies offering to perform the services for more money than First Potomac. Obi then recommended that First Potomac receive the contracts because their bids were less expensive.

In exchange, according to the OAG, Chimah helped Obi obtain insurance payouts by making fraudulent representations to insurance companies. In at least four claims, Chimah falsely stated that First Potomac had completed and billed for repair work on Obi’s properties.

Chimah and Obi pleaded guilty in October. About a week later, Baltimore County Circuit Judge Robert Cahill Jr. sentenced Chimah to three years in prison, but suspended that in favor of 18 months of probation. He was also ordered to pay the state a $5,000 fine and nearly $22,000 in restitution.

“Marylanders deserve to know their tax dollars are being spent honestly and efficiently, not used to line the pockets of corrupt state employees and government contractors,” Maryland Attorney General Anthony Brown stated in an October press release after Obi and Chimah pleaded guilty.

Obi was represented by Jeremy Eldridge of Eldridge Crandell in Baltimore. Chimah was represented by Joseph Murtha of Rice, Murtha & Psoras. Neither was available for comment on Tuesday afternoon.