Former Baltimore City Tax Collector Pleads Guilty to Bribery and COVID-19 Relief Fraud

Federal prosecutors have announced that Joseph Gillespie, a former Baltimore City tax collector, has admitted to accepting bribes from property owners and fraudulently obtaining COVID-19 relief funds.

Gillespie, 35, pleaded guilty to charges related to an eight-year bribery scheme during which he accepted $250,000 in bribes to erase outstanding water bills, citations, and tax obligations. According to the U.S. Attorney’s Office for Maryland, this scheme cost Baltimore taxpayers $1.2 million.

The FBI captured multiple recordings of Gillespie discussing his illegal activities. In one recording, he claimed he could “wipe a bill off the city’s record” or falsely mark obligations as “paid.” In another conversation, he described himself as the “inside man” for various people across the city.

The bribery took place between 2016 and September 2023. Over his 15-year tenure with the Baltimore City Finance Department, Gillespie reportedly took a cut of 10-15% of the debts he was supposed to collect before removing them from the records. He would sometimes send property owners photographic proof of the erased debts. He also accepted bribes to delay payments.

Authorities alleged that Gillespie had accomplices within other city government agencies. For instance, he mentioned having someone in the water department who could erase debts. He also received referrals from a co-conspirator, directing more bribes his way.

Additionally, federal investigators discovered that Gillespie exploited the COVID-19 pandemic to commit fraud. In March 2021, he and co-defendant Ahmed Sary created a fake business to secure a $138,000 loan from the Paycheck Protection Program (PPP). Gillespie paid Sary $38,000 for his role in the fraudulent application and used the rest to buy and rehabilitate real estate and pay personal debts.

If the plea agreement is accepted, Gillespie faces two to five years in prison, with sentencing scheduled for December 9.

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