Attorney General Anthony G. Brown announced today that Jonathan Tarrell Smalls, 41, faces charges of felony theft scheme, identity fraud, and public assistance fraud following two indictments by the Anne Arundel County Grand Jury. The cases, spearheaded by the Attorney General’s Fraud and Corruption Unit, Criminal Division, accuse Smalls of defrauding the State of Maryland of over $2.5 million.
Smalls, who operated multiple childcare centers in Baltimore, including Habakkuk Outreach Ministries, House of New Beginnings, and It’z A Brighter Learning Center, allegedly concealed his ownership and inflated attendance records to obtain state payments illegitimately. This followed the Maryland State Department of Education’s (MSDE) revocation of his childcare certificate, barring him from licensing. Smalls purportedly used multiple false identities to continue his operations, leading to fraudulent billing practices.
One cited instance from February 6, 2018, involved a claim for 51 children present at one of his centers, while only 12 were found during an MSDE site visit. Another incident on October 23, 2023, revealed a facility billed for over 20 children, yet was closed on the day of the visit.
The second indictment details Smalls’ fraudulent reception of Supplemental Nutrition Assistance Program (SNAP) and Maryland Medical Assistance Program benefits. Allegedly residing in Pennsylvania, Smalls is accused of falsely reporting his income and residence to continue receiving Maryland state benefits. He reportedly declared a monthly income of $1,000 while maintaining a lifestyle that included ownership of properties in Florida and Pennsylvania, along with two Bentley vehicles.
The trial is set for the Circuit Court for Anne Arundel County with a status conference on March 28, 2025. Attorney General Brown emphasized the commitment to prosecuting those who misuse public assistance, underscoring the direct impact on families relying on such services. The Maryland State Department of Education, through State Superintendent Dr. Carey M. Wright, expressed gratitude towards the ongoing efforts to protect public funds and uphold lawful childcare operations.
Prosecutors for the case include Fraud and Corruption Unit Chief Alexander Huggins and Assistant Attorney General Warren Davis, with thanks also extended to Anne Colt Leitess, State’s Attorney for Anne Arundel County, for her role in the prosecution.
As a reminder, an indictment is not a conviction, and the accused is considered innocent until proven guilty.
