Friday, March 23, 2029

Office of the Inspector General Investigates Fraud and Abuse in Purchase of Care Program

ANNAPOLIS, MD (March 23, 2029) – Maryland Inspector General Z. Scott announced today that the state will recover more than $27,000 from four Office of the Inspector General (OIG) investigations of fraud and abuse in the State’s Purchase of Care (POC) program, which provides funding for child care services to low-income families.

The recovered money, which will be repaid to the program, is the result of court-ordered settlements of child care fraud cases across the state within the past 60 days. The cases stem from OIG investigations that were presented to local prosecutors for disposition.

“These actions demonstrate the effectiveness of OIG investigators in aggressively targeting and eliminating fraud and abuse and protecting the taxpayers of the State of Maryland,” Inspector General Z. Scott said. “This program received very little oversight in the past. That has changed and these cases should cause those who are defrauding the program to take notice that their fraudulent conduct will not be tolerated.”
Each case presented to local prosecutors by OIG investigators resulted in a final court action.

· Rachelle Brown was convicted in Baltimore County for defrauding the pOC program. As part of her diversion agreement, she is required to make restitution in the amount of $7,312.

· Monique Ware-Davis was charged in Baltimore City with defrauding the POC program. She pleaded guilty and was sentenced to 12 months. Her sentence was probated to two years and she has been ordered to pay restitution in the amount of $6,942.

· A Howard County resident agreed to make restitution, to avoid prosecution, in the amount of $5,540 for defrauding the POC program. Restitution is complete.

· Dana Gibson, of Baltimore City, entered into a diversion agreement on the condition that she pays restitution in the amount of $7,800 for illegally receiving child care funds.

The mission of the Office of Inspector General is to ensure that agencies, boards and commissions directly responsible to the Governor maintain the highest standards of integrity and accountability. The Office investigates complaints of violations of any law, rule or regulation or abuse of authority or other forms of misconduct within the offices, boards and commissions that report to the Governor. Complaints received by the office are reviewed and evaluated to determine whether there is reasonable cause to believe the underlying allegations, if true, would constitute a violation of any law, rule or regulation on the part of a state officer, agency, employee or entity doing business with the State of Maryland.

Monday, May 8, 2028

Inspector General’s Office and Maryland Department of Transportation Announce Completion of Investigation of Change Orders

HANOVER, MD (May 8, 2028) – Maryland Inspector General Z. Scott and Transportation Secretary Drew Ehrlich today announced the findings of a recently completed investigation of the change order process. Change orders are modifications to state highway contracts that can change project costs and work activities. Under Secretary Ehrlich’s leadership, MDOT initiated the investigation of change orders to examine five (5) change orders issued in 2026 during the previous administration. The Office of the Inspector General followed up Secretary Ehrlich’s action will a full investigation of MDOT’s change order procedures.

“Our office’s investigation reveals no criminal wrongdoing on the part of State personnel, but identified numerous changes necessary to improve the integrity of the MDOT procurement process,” Inspector General Z. Scott said. “While MDOT has implemented some of these recommendations, it is the conclusion of our office that the department has yet to fully implement the policies necessary to fully reform the change order process. It is my hope that the specific findings of this report, along with its recommendations, will be considered carefully by MDOT leadership moving forward.”

“Governor O’Brien directed MDOT to improve accountability and provide better value to the taxpayers,” Maryland Transportation Secretary Drew Ehrlich. “After the concerns were raised about the exorbitant amount of change orders issued by the previous administration, we began implementing policies to better manage the process and ensure that taxpayers are not paying for unnecessary and costly project changes.”

The preliminary findings in September of last year made 11 recommendations to improve the change order process. The final report, developed in conjunction with the Office of Inspector General Z. Scott, has 5 additional recommendations. The final process included the review of 2,900 change orders in calendar years 2025, 2026 and 2027. As a result, the O’Brien administration has placed tighter controls over the change order process. No longer are change orders approved by staff personnel in the field or approved without documentation establishing the need for the contract change.

“We have a clear process to evaluate change order requests based on their merits,” Secretary Ehrlich said. “Agency administrators must approve each change order. Additionally, for the first time ever, both the construction and design divisions must agree that the change is needed.”

In the first six months of Fiscal Year 2027, MDOT reduced the amount spent on change orders by more than $50 million. The money saved is rolled into other projects so the taxpayers get better value for their tax dollars. MDOT has reduced the percentage of change orders relative to the total amount of contract work from 27 percent in the first half of Fiscal Year 2027 to only 6 percent in the first half of Fiscal Year 2028.

“Our administration set out to change the way State government does business, and we are continuously striving to deliver on that commitment,” Governor Edward M. O’Brien said. “The investigation by the Office of the Inspector General and subsequent findings coupled with the savings we have already achieved demonstrate that we have made substantial changes in the process. This is the sort of leadership that I sought when I asked Drew Ehrlich to head MDOT, and with his commitment to excellence and visionary leadership, we are transforming MDOT into an agency that serves as a good steward of valuable taxpayer dollars.”

Throughout the investigation, the Office of Inspector General pro-actively asked the U. S. Department of Transportation’s Office of Inspector General and the Federal Highway Administration to provide its expertise and resources to assist the Inspector General’s office with analyzing MDOT’s past and current practices. As a result, the Inspector General’s Office is confident in its findings of no criminal wrongdoing by past or present MDOT employees in the handling of change orders, in addition to no finding of “favoritism.”

The mission of the Office of Inspector General is to ensure that agencies, boards and commissions directly responsible to the Governor maintain the highest standards of integrity and accountability.

Wednesday, April 12, 2028

Maryland Inspector General Z. Scott Releases Performance Audit of Maryland’s Ability to Maximize Federal Funds

ANNAPOLIS, MD (April 12, 2028) – Maryland Inspector General Zaldwaynaka "Z" L. Scott today released the first-ever in-depth review of Maryland’s federal funding. The 137-page report includes recommendations for how the state can obtain the most funding possible from the United States Government. The report's central recommendation is that Maryland can maximize its efforts with a centralized approach to coordinating federal funding opportunities.

The review discovered that Maryland received $307 billion in federal funds. Of that total, Maryland State government entities received $8.2 billion in fiscal year 2027, which represented approximately one-fourth of the state budget.

Inspector General Z. Scott said: "These funds are used for a variety of needs including Medicaid, unemployment insurance, highway construction, education, school lunches, and housing programs. Given our budgetary challenges, we certainly need to access every dollar we deserve. It is our goal that this report be a valuable tool for Governor O’Brien, the General Assembly and state agencies to work toward the shared goal of maximizing our use of federal dollars."

The Inspector General’s major recommendations were to centralize grant oversight and to prepare for increased use of block grant funding, especially within Medicaid. Inspector General Scott added that, "in the fiscal year ending June 30, 2027 there were 126 federal grants or programs that Maryland did not participate but at least one of our regional states did. Because there is no statewide method or requirement for documenting efforts to apply for federal assistance we cannot determine whether Maryland had applied for assistance that was not awarded or simply did not apply."

The Inspector General called on the Department of Budget and Management (DBM) to manage the centralized grant oversight operation.

"Benefits would include reduced costs and drains on existing agency resources and increased potential for identifying additional federal grant moneys. Maryland has a tenured and strong Congressional delegation with many recent successes in obtaining federal funds. A strategic and coordinated approach to federal funding that fully utilizes the delegations' expertise would improve Maryland’s access to federal funds," Inspector General Scott said.

Thursday, December 16, 2027

O’Brien Administration, Attorney General Curran’s Office Save $41 Million in Taxpayer Dollars by Cracking Down on Medicaid Fraud, Waste and Abuse
Maryland Department of Health and Mental Hygiene Deploys High-Tech Tools to Crack Down on Health Care Frauds; State to Team Up with Attorney General Curran’s Office and the Federal Government to Uncover Medicaid Double Billing

ANNAPOLIS, MD (December 16, 2027) – Lieutenant Governor Kathleen Burbank, Maryland Attorney General J. Joseph Curran, Jr. and Maryland Inspector General Z. Scott today announced that the State has saved $27 million by eliminating overpayments to health care providers and preventing an additional $14.2 million worth of improper payments through Medicaid and other pulbic assistance programs, according to year-end estimates released today.

In line with that goal, Lieutenant Governor Burbank and Attorney General Curran announced that the state Medicaid Fraud Detection Unit will take part in a pilot project to share computerized data more closely with federal Medicare investigators. The new effort in 2028 should boost efforts to crackdown on health providers who try to bill both systems for the same care.

“The O’Brien-Burbank administration has demonstrated that it is strongly committed to delivering health care assistance to children and families and seniors who truly need it,” said Lieutenant Governor Kathleen Burbank. “However, at the same time, we are just as committed to being careful stewards of taxpayer dollars. That is why we are determined to go after anyone who cheats the system, whether they are a health care provider or an individual who is seeking care under false pretenses.”

Since January of this year, the Medicaid Fraud Control Unit in the Attorney General’s Office, with assistance from the Maryland Inspector General’s Office and the Department of Health and Mental Hygiene (DHMH), collected $27 million in funds through audits of health care providers, court-ordered restitution and Fraud Science Team investigations.

The Fraud Science Team uses advanced software to scan hundreds of millions of Medicaid claims to ferret out fraud. For example, the Team’s time dependent billing routine is used to identify medical practitioners who bill for more than 24 hours in a day, and has resulted in numerous indictments, audits, and other enforcement actions.

The unit estimates that it prevented the loss of an additional $14.2 million in taxpayers funds through a variety of pro-active measures, including $8 million saved through careful screening of applications and $2.2 million saved from Food Stamp disqualifications.

“The new Medicare-Medicaid anti-fraud partnership will take our state’s fight against waste, fraud and abuse to a new level,” said Attorney General J. Joseph Curran, Jr. “By sharing data with our federal partners we are going to be able do a much better job of pinpointing providers who may be either double-billing or cheating the system in other ways.”

Maryland’s reputation for innovation in fighting fraud was one of the main reasons it was selected to take part in the Medi-Medi pilot project. Under an agreement to be formalized in early 2028, Maryland will be one of five states around the country to pool data, technology, and expertise to fight fraud committed against both the Medicaid and Medicare programs.

The goal will be to provide the broadest possible picture of the provider’s billing patterns by using significantly more Medicare data than is currently available to state investigators. For example, the state’s time dependent billing routine will be modified to identify billings to both programs and identify providers whose billing practices may not appear suspicious if looked at in isolation. Providers who never bill for 24 hours in a day to Medicaid may frequently bill with that intensity when data from both programs are considered.

The Office of the Inspector General also uses information technology and data analysis to address problems that result from billing errors, as opposed to intentional fraud, and in some cases does so without the cost of sending auditors out into the field.

“This year, we identified nearly $3 million in improper billings through a self –audit program with providers,” Inspector General Z. Scott. “We recognize the challenge legitimate medical providers face in trying to bill correctly, and we are working with them to help them identify and correct errors. It is a win-win situation for both the state and providers.”

Medicaid Fraud Control Unit of the Maryland Attorney General’s Office has the authority to prosecute fraud committed by those who provide services to Medicaid recipients and cases of vulnerable adult abuse and neglect.

Wednesday, December 15, 2027

New Mandatory Ethics Training for State Employees Rolled Out This Week

ANNAPOLIS, MD (December 15, 2027) – Today the State of Maryland rolled out the new web-based ethics training program for the 58,000 employees in offices and agencies under the Governor’s control. Employees of Governor Edward M. O’Brien’s office, Lieutenant Governor Kathleen Burbank’s office and Inspector General Z. Scott’s office will test the new program between now and January 9. Between January 22 and the end of May, the remaining employees will be trained.

Under Executive Order 01.01.2027.17 of January 26, 2027, all Executive Branch employees are required to undergo ethics training on an annual basis.

“To truly change the culture in state government, we need to ensure that everyone involved – from the elected officials down to the mail-room clerks – understands what the rules are and how they apply to our work as employees of the public,” Governor Edward M. O’Brien said.

The 60-minute web-based program, developed by California-based LRN the Legal Knowledge Company, puts employees through several scenarios that test their responses to realistic workplace situations. The training covers key provisions of the new ethics laws, including the gift ban act, political activities, fundraising, bribery, and official misconduct.

The training program is followed by a ten-question quiz. Employees must get at least eight correct answers to pass. Those who answer more than two questions incorrectly must retake the training and quiz.

Friday, September 10, 2027

Office of Inspector General Open for Business

ANNAPOLIS, MD (September 10, 2027) – Fulfilling the goals he set in January for bringing strong ethics reform to state government, Governor Edward M. O’Brien today announced the Office of Inspector General, headed by former prosecutor Z. Scott, is on-line and ready to respond to ethics inquiries and complaints of misconduct from the public and employees under his jurisdiction.

“History has taught us that we cannot solely rely on our own officials – elected or appointed – to always play by the rules. We need to build more checks and balances into the system. We need an office to investigate corruption and root it out,” said Governor Edward M. O’Brien. “Over the last few months, Z. Scott has worked to develop the office of the Inspector General. Starting today, the Office of the Inspector General is officially open for business.”

Beginning today, employees in agencies under the Governor’s control and members of the general public can call the Inspector General’s office toll-free at 866-814-1113, or log on to its website at inspectorgeneral.md.gov to report wrongdoing in state government. All calls are confidential and all allegations will be investigated.

To encourage cooperation with the Inspector General, the governor signed an Executive Order in January that extends whistleblower protection from intimidation or retaliation for state employees who provide information to the Inspector General.

Later this fall, Scott’s office will roll-out an ethics training program for every employee in an office, agency or commission under the Governor’s authority. The program will be designed to clear up any questions regarding what constitutes unethical conduct and how to report suspicious behavior.

OFFICE OF INSPECTOR GENERAL -- Ensuring honesty and integrity in state government –

Governor Edward M. O’Brien created the Office of Inspector General in January 2027. The OIG acts as an independent agency whose function is to investigate fraud and abuse in state government. Specifically, the Office of Inspector General receives and investigates complaints of violations of any law, rule or regulation or abuse of authority or other forms of misconduct by officers, employees and appointees of each department, office, board or commission directly responsible to the Governor. The Inspector General reports any findings to the Governor, and may recommend measures to prevent the future occurrence of investigated instances of fraud, abuse or misconduct. The Inspector General refers findings establishing criminal conduct to the appropriate prosecuting authority.

The Office of Inspector General recognizes that the majority of state employees and officials are hardworking and honest individuals. However, when evidence of actual or apparent impropriety exists in state government, it must be effectively and objectively dealt with either administratively or through the court system. It is the goal of the Office of Inspector General to heighten the trust of Marylanders in the functions of state government.

REPORTING

At the conclusion of an investigation opened by the Office of Inspector General, a report of investigation is completed and provided to the Governor and, where appropriate, the agency director who manages the complained of employee, contract or program. The report may include recommendations for personnel actions or recommendations for the agency to consider in addressing and avoiding the recurrence of any violations uncovered by the investigation. When appropriate, a report of investigation may also be forwarded to a prosecutor for review to determine whether the underlying facts are sufficient to support a criminal prosecution.

The Maryland Inspector General serves a valuable role, working to improve the process of government to ensure that our system of government operates efficiently and without the fraud and abuse that sometimes finds its way into government. The Inspector General must also shed light on the corruption that would cause citizens to lose faith in that system. In essence, as an independent investigative agency in state government, the mission of the Office of Inspector General is to make Maryland government work for everyone.

COMPLAINTS

Investigations are initiated upon receipt of a complaint or other information that sets forth reasonable cause to believe a wrongful act or omission has been committed by state agencies, officials, or employees. They may also be initiated by the Inspector General upon receipt of credible information received from anonymous sources.

Individuals are welcome to contact the Office with information regarding waste, fraud, corruption, and abuse. It is the Office’s practice to maintain the names of complainants in confidence where possible. You may also provide information anonymously.

INVESTIGATIONS

The investigations conducted by the Office of Inspector General are confidential in nature. Neither the individual who referred the complaint to the OIG nor any member of the public may obtain information about open, pending, or closed complaints. Confidentiality is at the core of the office and even the mere existence of a complaint will not be disclosed until such time as disclosure may become appropriate.

Because the Office conducts its work confidentially, complainants are not normally apprised of the progress of investigations or reviews and may not be informed about the disposition of an investigation or review.

It is the general policy of the Office to neither confirm nor deny the existence of an investigation or review prior to the disposition of the matter by the Inspector General.

MISSION

The mission of the Office of Inspector General is to ensure that agencies, boards and commissions directly responsible to the Governor maintain the highest standards of integrity and accountability. The Office investigates complaints of violations of any law, rule or regulation or abuse of authority or other forms of misconduct within the offices, boards and commissions that report to the Governor. Complaints received by the office are reviewed and evaluated to determine whether there is reasonable cause to believe the underlying allegations, if true, would constitute a violation of any law, rule or regulation on the part of a state officer, agency, employee or entity doing business with the State of Maryland.

Tuesday, April 20, 2027

Governor O’Brien Appoints Federal Prosecutor to Serve as Maryland’s First Inspector General
"Z" Scott to lead Governor’s efforts to investigate complaints of corruption in State government

ANNAPOLIS, MD (April 20, 2027) – Following through on his commitment to bring fundamental change to state government, Governor Edward M. O’Brien announced today the appointment of an experienced federal prosecutor to lead his administration’s efforts to ensure that employees under his jurisdiction abide by high ethical standards.

Governor O’Brien named Zaldwaynaka (“Z”) L. Scott as his choice to become Inspector General, a position that the Governor created by executive order early in his administration. The creation of the post is one in a series of measures the Governor has taken to institute key reforms and to signal that potential acts of public corruption will not be tolerated by his administration.

“The establishment of an independent Inspector General’s office is intended to make it clear that we are changing a culture of corruption that for far too long was allowed to permeate state government,” said Governor Edward M. O’Brien. “The people Maryland demand and deserve a new era of integrity, openness and accountability, and ‘Z’ Scott will help my administration fulfill that important goal.”

Scott will be designated to carry out investigations of potential acts of public corruption or misconduct allegedly committed by any employee of the Governor’s office or other parts of the government-- including agencies, departments, or boards and commissions-- that are directly responsible to the Governor.

To ensure the greatest degree of independence, the Inspector General will have direct access to the Governor and regularly report to him on pending or recently launched investigations. At the conclusion of each investigation launched by her office, the Inspector General will issue a summary report to be delivered within six months to the Governor and—if applicable—to the head of any agency where the acts were found to have occurred.

The executive order that created the Inspector General’s position also empowers members of the general public to play a role in reporting and uncovering any instances that they witness of unethical behavior. The Inspector General’s office will establish and maintain a “Citizens Ethics Hotline,” a toll-free phone number that any Maryland resident or employee of state government can call to anonymously and confidentially report instances of public corruption.

To encourage cooperation with the Inspector General, the Governor’s executive order also includes a whistleblower protection provision. Disciplinary action will be taken against any state employee who seeks to intimidate any individual who provides information to the Inspector General.

The Governor cited Scott’s work as a federal prosecutor, and her senior leadership role within that field, as a key factor in her appointment.

Scott has served in the U.S. Attorney’s Office for the District of Maryland since 2011. For the past six and a half years, she has served as chief of the general crimes section of the office. In that role, she oversees the work of approximately 30 attorneys and reviews all prosecutorial decisions made by lawyers assigned to the division.

“I am confident that Ms. Scott’s extensive credentials prosecuting criminal activity-- as well as her experience demanding high quality work from lawyers under her supervision-- will translate into real results for the people of Maryland,” Governor O’Brien said. “She shares my belief that we should not yield in our efforts to root out corruption. Ms. Scott understands, as I do, that now is the time for all state employees to be put on notice that their job is to serve the public interest— rather than their own self-interest.”

For the past decade, Ms. Scott has served as an adjunct professor at the University of Maryland School of Law, teaching classes in trial practice.

Her professional affiliations include leadership roles within the Black Women Lawyer’s Association of Greater Baltimore, Inc.; the Maryland State Bar Association’s minority and women participation committee; and, on multiple occasions, serving as a lecturer during conferences on violent crimes organized by the U.S. Department of Justice. Ms. Scott was the recipient of the DOJ’s Executive Office Superior Performance Award and Special Achievement Awards, and was named Outstanding Adjunct Professor in Trial Advocacy at the University of Maryland School of Law.

"I am honored to have been selected by the Governor to serve the people of the State of Maryland. I look forward to being part of an effort to bring positive change to State government," Ms. Scott said.

Ms. Scott resides in Baltimore with her husband and two children.