City employee who took bribes had been flagged years before, records show

A former Baltimore government employee who admitted last year to accepting bribes in exchange for adjusting some property owners’ water and tax bills had been flagged years earlier by another employee for “inconsistencies” apparent in his work, according to documents obtained by The Baltimore Banner from a public records request.

The employee, Joseph Gillespie — who worked for the Department of Finance’s Bureau of Revenue Collections — acknowledged the bribery scheme as part of a separate guilty plea this past summer in a fraud case and is scheduled to be sentenced next month. His activities lasted from at least 2016 until the time of his arrest in September 2023, according to federal prosecutors.

The revelations from the federal investigation, and local follow-up, have officials calling for modernization and more oversight of city financial systems to prevent employees from subverting detection.

Several properties associated with Gillespie’s scheme had their taxes wiped, reduced or delayed. Federal prosecutors wrote in legal filings that he successfully helped some homeowners avoid tax sale, a byzantine process in which several Baltimore residents have lost their homes.

Undercover officers recorded Gillespie outlining the process for accepting money in exchange for favors. He received more than $250,000 in connection with the ruse and caused more than $1.25 million in losses to the city, prosecutors wrote in plea agreement documents.

Many years ago, a senior auditor “raised concerns” about some of the properties that Gillespie collected taxes for, the records show. In emails written to other city employees after Gillespie’s resignation, his supervisor, Edward Scrivener, said that the employee pointed out discrepancies in Gillespie’s work relating to one property owner whose taxes were incorrectly marked as having been paid.

But “nothing came of” the auditor’s concerns, Scrivener said, and that person eventually retired from city service. The retired auditor did not respond to a request for comment.

It’s not clear why the auditor’s warnings went ignored. Mayor Brandon Scott’s administration has declined to answer questions related to Gillespie, citing legal concerns about an ongoing investigation. In response to other questions about the tax sale system, Scott’s office said the process would be improved and modernized.

But some in city government have continued to sound the alarms, noting that Gillespie’s admission makes clear the flaws in how Baltimore’s back-end functions.

“It gives us much more of a reason to improve the city’s internal systems, so that we’re not continuing to scrape along with 40-year-old software,” said city Comptroller Bill Henry. He called the situation “disturbing” though not surprising, given the failure of the city to adapt its practices or spend money on more expensive upgrades.

In a September news release, Henry’s office blasted Scott’s administration for failing to provide more insight into the matter. He also called the bribery scheme “probably avoidable” and faulted the Department of Finance for failing to articulate a “strategic, comprehensive” approach to collecting revenue.

Henry also said he had concerns about the “ease” with which the scheme had been carried out, and he requested, once again, for the finance department to be moved under the comptroller’s office, which he had previously advocated for to the mayor’s office unsuccessfully.

“My office has repeatedly offered its time, expertise and staff energy to support and strengthen the city’s fiscal operations,” the September statement said. “We know we have a great deal to contribute.”

Baltimore Inspector General Isabel Mercedes Cumming’s staff also pointed to concerns about the city finance agency, saying in an August letter that the Bureau of Revenue Collections relies on a system with minimal security and limited “audit trails.”

For example, users of the system must manually calculate payments, the letter states, and customers aren’t allowed to view total amounts due or consolidated bills. A new property tax system is in progress, the letter noted, and should be implemented by October 2025.

Cumming’s office also noted in a report summary that Gillespie processed payments for people who paid him via Zelle. An investigation found over 50 instances in which he forwarded tax sale documents and other information to his personal email address, in violation of city policy. The office recommended strengthening audit log capabilities and increasing security features in any replacement systems.

Gerald C. Ruter, an attorney for Gillespie, said previously that his client took full responsibility for his conduct and will “do everything he can” to make amends. On Friday, he said he had previously asked for a precise accounting of how much money the city lost out on, but was told it could not be traced.