Glen Arm landlord admits bribery scheme with Baltimore finance employee and separate COVID-19 relief fraud case
Guilty plea outlines payments to a city revenue employee and alleged manipulation of municipal debt records
A 55-year-old Glen Arm man pleaded guilty in federal court on Thursday, March 5, 2026, to bribing a former Baltimore City finance employee in exchange for the removal or reduction of money he owed the city, federal prosecutors said. The case centers on James Carroll Erny Jr., who admitted paying at least $25,000 in bribes to Joseph Gillespie, a former employee in Baltimore’s Department of Finance.
Under the plea agreement, the bribery scheme began in December 2019 and continued until August 2023. During that period, prosecutors said, Erny owned at least eight properties in Baltimore City and repeatedly sought help with outstanding municipal obligations linked to those holdings.
How the bribery scheme worked, as described in court filings
Authorities said Erny paid bribes to obtain actions that delayed, removed, or extinguished financial obligations owed to Baltimore, including unpaid citations, tax obligations, and water-related obligations. Prosecutors said the city suffered losses of more than $145,000 as a result of the conduct described in the plea.
The plea documents describe multiple payment methods. Prosecutors said Erny often delivered cash in envelopes—sometimes containing as much as $1,000—while Gillespie worked at the Abel Wolman Municipal Building. The filings also describe meetings in a men’s bathroom inside the city-owned building to transfer cash. In addition to cash, prosecutors said Erny made payments using Cash App and Zelle.
- Time frame described in plea: December 2019 to August 2023
- Amount Erny admitted paying: at least $25,000
- Estimated city losses: more than $145,000
- Properties cited in plea: at least eight Baltimore City properties
Separate admissions involve alleged misuse of pandemic relief programs
In the same court proceeding, prosecutors said Erny also admitted to a separate fraud scheme involving COVID-19 relief funding. The plea agreement states that Erny fraudulently obtained $996,240 in Paycheck Protection Program funds and attempted to obtain more than $100,000 in Economic Injury Disaster Loan funds.
The plea agreement describes two parallel tracks: a bribery arrangement tied to municipal debt records and a separate scheme involving federal pandemic relief programs.
Sentencing schedule and related case history
Erny faces a maximum sentence of 10 years in federal prison on the bribery charge, according to prosecutors. U.S. District Judge Richard D. Bennett scheduled sentencing for Tuesday, June 9, 2026, at 11 a.m.
Gillespie was sentenced in February 2025 to four years in prison in connection with a wire-fraud conspiracy, prosecutors said. Investigators involved in the current case included federal agents and Baltimore County police, according to the announcement.