Baltimore man admits to $990k fraud, bribery scheme
A Baltimore County man has pleaded guilty to a two-part scheme involving bribery and COVID-19 relief fraud, authorities announced, revealing a complex web of financial misconduct that cost the city at least $145,000.
James carroll erny, jr., paid bribes to city official
James Carroll Erny, Jr., 55, admitted to paying at least $25,000 in bribes to Joseph Gillespie, a former employee in the Baltimore City Department of Finance. In return, Gillespie allegedly removed several of Erny's financial obligations to the city, including unpaid citations, tax obligations, and water bills. Court documents detail a scheme spanning from December 2019 to August 2023, with payments made in cash and via digital platforms like Cash App and Zelle.
The city lost over $145,000 as a result of Gillespie's abuse of his position. Court records show Erny owned at least eight properties in Baltimore and sought to eliminate unpaid debts through the illicit arrangement. Meetings between Erny and Gillespie, including instances in the men's bathroom of the city-owned Able Wolman Municipal Building, facilitated the exchange of bribes.
This guilty plea follows a previous sentencing of Gillespie in February 2025 to four years in federal prison for his role in the bribery scheme, which involved multiple co-conspirators.
Separate fraudulent covid-19 relief scheme
Erny also pleaded guilty to fraudulently obtaining nearly $996,240 in COVID-19 relief funds through the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) programs. He also attempted to secure over $100,000 in EIDL funds.
The maximum sentence Erny faces is 10 years in federal prison. His sentencing is scheduled for June 9.
The speed with which these schemes unfolded highlights the vulnerabilities exposed during the pandemic and the lengths some individuals went to exploit relief programs. The details reveal a calculated effort to circumvent legitimate financial obligations, leaving taxpayers to foot the bill.
This case underscores the persistent risk of fraud associated with government assistance programs, and the ongoing vigilance required to safeguard public funds.