Pennsylvania Man Sentenced for Stealing $2.5 Million in Childcare Payments

AG: Maryland News

Filed March 24th, 2026

Detected March 24th, 2026

Summary

Maryland Attorney General Anthony G. Brown announced the sentencing of Jonathan Tarrell Smalls, a former childcare center owner, for stealing over $2.5 million in childcare scholarship payments and fraudulently receiving public assistance. Smalls was sentenced to four years in prison and ordered to repay over $2.7 million.

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What changed

Jonathan Tarrell Smalls, a former childcare center owner from Pennsylvania, has been sentenced to four years in prison for stealing over $2.5 million in childcare scholarship payments from the State of Maryland between 2014 and 2024. He also fraudulently obtained Supplemental Nutrition Assistance Program (SNAP) and Maryland Medical Assistance Program benefits. Smalls concealed his ownership of childcare centers, inflated attendance records, and falsified his residence and income to continue receiving benefits after his childcare certificate was revoked. His fraudulent activities included purchasing properties and vehicles inconsistent with his claimed income.

Smalls was sentenced on March 20, 2026, by the Honorable Robert J. Thompson of the Circuit Court for Anne Arundel County. He will serve four years in prison, followed by five years of supervised probation, with a potential additional 11 years if probation is violated. He is required to repay $2,760,036 to the State of Maryland. This case highlights the importance of robust oversight of childcare subsidy programs and the consequences of defrauding state assistance programs.

What to do next

Review internal controls for childcare scholarship payment processing.
Ensure accurate reporting of income and ownership for all state-funded programs.
Verify eligibility criteria for public assistance programs are strictly adhered to.

Penalties

Four years in prison, five years of supervised probation, and repayment of $2,760,036. Faces up to an additional 11 years if probation is violated.

Source document (simplified)

Pennsylvania Man Sentenced to Prison for Stealing Millions in Childcare Scholarship Payments from the State of Maryland

Published: 3/24/2026

FOR IMMEDIATE RELEASE

Media Contacts [email protected]
410-576-7009

BALTIMORE, MD – Attorney General Anthony G. Brown announced today the sentencing of former childcare center owner Jonathan Tarrell Smalls, 42, of Pennsylvania, in three separate cases. Smalls was indicted on January 3, 2025 and on March 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 Attorney General’s Fraud and Corruption Unit of the Criminal Division.

On March 20, 2026, the Honorable Robert J. Thompson of the Circuit Court for Anne Arundel County sentenced Jonathan Smalls to four years in prison, to 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 faces up to an additional 11 years if he violates probation. Smalls 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 Attorney General 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.”

“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.”

Between 2014 and 2024, Smalls fraudulently obtained over $2.5 million from the State of Maryland by concealing his ownership of childcare centers and inflating attendance records. 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.

Smalls also 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. As detailed in the indictment, Smalls’ standard of living was inconsistent with his claimed income; for example, Smalls owned properties in Kissimmee, Florida, and Lewisberry, Pennsylvania, as well as two Bentley motor vehicles.

Attorney General Brown thanked his Criminal Division, specifically Fraud and Corruption Unit Chief Alexander Huggins and Assistant Attorney General Warren Davis, who are prosecuting these cases. Attorney General Brown also thanked Investigative Auditor Amy Amy, the Maryland Department of Education, the Maryland Department of Human Services, and the Maryland Department of Health for their assistance with the investigation. Finally, Attorney General Brown thanked State’s Attorney for Anne Arundel County Anne Colt Leitess for her assistance with this prosecution.