BALTIMORE, MD – Maryland Attorney General Anthony G. Brown announced today that the Anne Arundel County Grand Jury has issued two indictments against Jonathan Tarrell Smalls, 41, a childcare center owner, for felony theft scheme, identity fraud, and public assistance fraud. The investigation was led by the Attorney General’s Fraud and Corruption Unit in the Criminal Division.
The first indictment charges that from 2014 to 2024, Smalls, who operated several childcare centers in Baltimore, including Habakkuk Outreach Ministries, House of New Beginnings, and It’z A Brighter Learning Center, fraudulently obtained more than $2.5 million from the Maryland State Department of Education (MSDE). He did so by concealing his ownership of these facilities and inflating attendance records to receive state payments meant only for licensed providers. After the MSDE revoked his childcare certification, Smalls continued to operate by assuming false identities and submitting falsified attendance records to maintain state funding.
One example of his fraudulent activities occurred on February 6, 2018, when one of Smalls’s childcare centers billed the state for 51 children, all marked as present, even though an MSDE site visit found only 12 children in attendance. More recently, on October 23, 2023, another facility controlled by Smalls invoiced the state for more than 20 children, but a site visit revealed the facility was closed with no children present.
The second indictment accuses Smalls of fraudulently receiving Supplemental Nutrition Assistance Program (SNAP) and Maryland Medical Assistance Program benefits from 2016 to 2024 by falsifying his residence and income. The indictment claims that although Smalls moved to Pennsylvania, he continued to receive Maryland benefits by lying on his applications, stating an income of only $1,000 per month, despite having a much higher income. Furthermore, Smalls’s lavish lifestyle, including properties in Florida and Pennsylvania, and ownership of two Bentley vehicles, was inconsistent with his reported income.
The case will be heard in the Circuit Court for Anne Arundel County, with a status conference scheduled for March 28, 2025.
Attorney General Brown stated, “Defrauding childcare and public assistance programs directly harms the families who rely on them most. My Office will pursue those who exploit these essential services and hold them accountable.”
Dr. Carey M. Wright, State Superintendent of Schools, expressed gratitude for the partnership with the Attorney General’s Office, emphasizing the importance of maintaining high standards for childcare providers.
Attorney General Brown thanked his Fraud and Corruption Unit, specifically Unit Chief Alexander Huggins and Assistant Attorney General Warren Davis, as well as Investigative Auditor Amy Amy, for their work on the case. He also thanked Anne Arundel County State’s Attorney Anne Colt Leitess for her assistance in the prosecution.
A criminal indictment is merely an accusation. The defendant is presumed innocent until proven guilty in court.
