Baltimore Property Owner Indicted in Bribery Scheme Over Tax Bills

Federal prosecutors have unsealed an indictment revealing new details in a bribery scheme that rocked Baltimore’s Department of Finance. The scandal, initially uncovered last year, involved Joseph Gillespie, a longtime city employee and high school football coach, who allegedly accepted bribes to wipe out financial debts on city-owned properties, The Baltimore Banner reports.

On Wednesday, prosecutors named one of Gillespie’s alleged accomplices: 54-year-old James Carroll Erny, a Baltimore County property owner. According to federal court documents, Erny paid Gillespie cash bribes between 2021 and 2023 in exchange for clearing his unpaid water bills and other obligations, potentially saving him from losing properties during the city’s annual tax sale.

The indictment states that Gillespie used his position to “extinguish” Erny’s debts, shielding the properties from tax lien investors who often seek foreclosure on unpaid accounts. While Erny did not comment on the charges, public records show he has bought and sold multiple properties in the city over the years.

Gillespie’s actions have reignited criticism of Baltimore’s tax sale system. This long-controversial revenue mechanism disproportionately affects Black neighborhoods while sparing wealthier, whiter ones, which was documented in a 2023 Baltimore Banner investigation. Housing advocates have long argued that the tax sale process puts vulnerable homeowners at risk of losing their homes, sometimes due to city errors.

Although tax sales remain a key revenue tool for Baltimore and help reclaim vacant properties, the recent revelations have prompted calls for reform. Advocates are urging city leaders to expand relief programs, remove more homes from the sale list, and establish accessible payment plans. Mayor Brandon Scott has said these proposals are under review.

Gillespie was sentenced in February to four years in prison and ordered to pay restitution after admitting to accepting more than $125,000 in bribes since 2016, causing over $1.25 million in revenue losses. During sentencing, U.S. Judge Richard D. Bennett condemned Gillespie as a “thief,” though Gillespie claimed he was disillusioned with the tax system and tried to “fix it” himself.

Despite internal warnings from coworkers, Gillespie’s misconduct went unchecked for years. Prosecutors admitted they knew about his scheme as early as 2016 but said building the case took time. He resigned in 2024 after pleading guilty in a separate fraud case related to COVID-19 relief funds.

The investigation continues, with federal authorities working alongside the FBI and Baltimore County Police.

Baltimore Property Owner Indicted in Bribery Scheme Involving City Finance Worker was originally published on wolbbaltimore.com