ANNE ARUNDEL COUNTY, Md. — Attorney General Anthony Brown handed down two indictments Friday charging a childcare center owner.
Jonathan Tarrell Smalls, 41, is accused of felony theft, identity fraud and public assistance fraud.
According to court documents, Smalls, from 2014 to 2024, while owning and operating multiple childcare centers in Baltimore, fraudulently got $2.5 million from the state of Maryland by concealing his ownership of the centers and inflating attendance records.
Those centers include, but aren't limited to, Habakkuk Outreach Ministries, House of New Beginnings, and It’z A Brighter Learning Center, which all operated out of Baltimore.
The first indictment alleges that Smalls' fraud began after the Maryland State Department of Education (MDSE) revoked his childcare certificate of registration and refused to license any facilities he was involved with.
To operate his centers and continue to receive state payments, Smalls acquired multiple fake identities and hid his involvement in multiple childcare centers.
On February 2018, one of Smalls' centers invoiced the state for 51 children, all marked present with no absences. But after a site visit from the MDSE, it was found to only have 12 children in attendance.
Another one of Smalls' facilities in 2023 reported it had more than 20 children, when in reality it was closed with no children present.
The second of Smalls' indictments alleges from 2016 to 2024, he received SNAP and Maryland Medical Assistance benefits by falsifying his residence and income.
Court documents say Smalls had moved to Pennsylvania but still received Maryland medical assistance and SNAP benefits by lying on his applications.
He also reported he was only making $1,000 a month, when his income was way higher than that.
Smalls had owned properties in Kissimmee, Florida and Lewisberry, Pennsylvania, and two Bentley vehicles.
“The Maryland State Department of Education is grateful to the Maryland Office of the Attorney General for their work to safeguard public funds,” said State Superintendent of Schools Dr. Carey M. Wright. “Our continued partnership will ensure that we maintain high standards and lawful practices for any individual seeking to operate a child care facility.”
Smalls' case will be tried in Anne Arundel County, with a status conference scheduled for March 28, 2025.
