Pennsylvania Man Sentenced for Stealing $2.7M from State of Maryland
MARYLAND – Maryland Attorney General (AG) Anthony G. Brown has announced the sentencing of a former childcare center owner in three separate cases.
On Mar. 20, officials say 42-year-old Jonathan Tarrell Smalls of Pennsylvania was sentenced to four years in prison, which will begin upon his completion of an unrelated sentence he is currently serving. Upon his release from custody, Smalls will be on supervised probation for five years. He is also required to repay a total of $2,760,036 to the State of Maryland.
“While Maryland families struggled to afford childcare, Jonathan Smalls was pocketing millions in scholarship payments, driving Bentleys, and owning properties in multiple states,” said AG Brown. “This sentence sends a clear message that our Office will pursue anyone who steals from Maryland’s children and the families who depend on these programs.”
Between 2014 and 2024, Smalls fraudulently obtained over $2.5 million from the State of Maryland by concealing his ownership of multiple childcare centers in Baltimore. Smalls’ fraud began after the Maryland State Department of Education (MSDE) revoked his childcare certificate of registration and refused to license any facilities in which he was involved. To continue operating and receiving state payments available only to licensed providers, Smalls assumed multiple false identities and concealed his involvement in several childcare centers. These facilities not only operated under fraudulently obtained licenses, but also submitted falsified attendance records to claim larger state payments.
Smalls’ indictment details an incident from Feb. 2028, in which an MSDE site visit found only 12 children in attendance the same day 51 students were reported present. More recently, in Oct. 2023, another facility secretly controlled by Smalls billed the State for more than 20 children, but an MSDE site visit revealed that the facility was actually closed with no children present.
In a second case, Smalls fraudulently received Supplemental Nutrition Assistance Program (SNAP) and Maryland Medical Assistance Program benefits by falsifying his residence and income. Though Smalls moved to Pennsylvania, he continued to receive Medical Assistance and SNAP benefits from Maryland by lying on his applications for those benefits. Additionally, Smalls significantly underreported his income to obtain benefits, despite owning properties in multiple states and maintaining expensive vehicles.
Friday’s sentencing follows Smalls guilty plea, submitted Mar. 28, 2025. He pleaded guilty to felony theft scheme over $100,000, felony theft scheme $25,000-$100,000, and filing a false tax return. The case was investigated and prosecuted by the AG’s Fraud and Corruption Unit of the Criminal Division.
“Children and families depend on childcare providers who follow our standards and use public funds responsibly,” said State Superintendent of Schools Dr. Carey M. Wright.“We appreciate the Maryland Office of the Attorney General for its work on this case. MSDE remains committed to strong oversight, protecting the integrity of the Child Care Scholarship Program and ensuring that every dollar goes toward safe, high‑quality care for Maryland’s children.”
