Former Maryland Correctional Employee and Business Owner Sentenced for Fraud Scheme

Pair conspired to steer state contracts to their own company through fraudulent bids and claims

Published on Feb. 21, 2026

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A former employee with the Maryland Department of Public Safety and Correctional Services (DPSCS) and the owner of a contracting company, First Potomac Environmental Corporation, were both sentenced for their involvement in a fraud scheme. The former DPSCS employee, Martin K. Obi, was sentenced to three years of probation and ordered to pay back state taxes, while the business owner, Joseph Chimah, received a year and a half of probation, a $5,000 fine, and $21,774 in restitution.

Why it matters

This case highlights the ongoing problem of public sector corruption and the need for stronger oversight and accountability measures to prevent fraud and abuse of taxpayer funds. It also raises concerns about the integrity of the state's contracting and procurement processes.

The details

According to the Maryland Attorney General's Office, Obi and Chimah engaged in a fraudulent contracting scheme between 2018 and 2022, in which they steered at least eight DPSCS contracts for maintenance and repairs to First Potomac Environmental Corporation. Chimah submitted fraudulent bids that appeared to come from competitors but were priced higher than First Potomac's bids, which Obi then used to recommend the contracts to First Potomac. Chimah's company received $51,224 in state funds during the scheme, and he also helped Obi obtain insurance payouts by submitting fraudulent documents.

  • The fraudulent contracting scheme took place between 2018 and 2022.
  • Obi and Chimah were sentenced on February 18, 2026.

The players

Martin K. Obi

A former employee with the Maryland Department of Public Safety and Correctional Services (DPSCS) who was involved in the fraud scheme.

Joseph Chimah

The owner of First Potomac Environmental Corporation, a contracting company that was involved in the fraud scheme.

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What they’re saying

“We must hold public officials and contractors accountable when they abuse the public trust for personal gain.”

— Brian Frosh, Maryland Attorney General (CBS News Baltimore)

What’s next

The Maryland Attorney General's Office has indicated that they will continue to investigate and prosecute any instances of public sector corruption and fraud to protect taxpayer funds.

The takeaway

This case serves as a reminder of the importance of transparency, oversight, and accountability in government contracting and procurement processes to prevent fraud and abuse of public resources.