
FBI Search Targets Baltimore Nonprofit Tied to School Board Member Amid Questions Over $2M in Public Funds and Financial Discrepancies
FBI raid on KEYS Empowers prompts school board resignation and contract cuts; 2024 filings show $427k salaries with zero employees listed, alongside millions in ARPA, Medicaid, and state funds under scrutiny for discrepancies and prior IG findings.
On September 30, 2026, FBI agents executed a court-authorized search at 7501 Liberty Road in Baltimore, the headquarters of KEYS Empowers, a nonprofit led by Mujahid Muhammad. Muhammad, appointed to the Baltimore City Board of School Commissioners by Mayor Brandon Scott in 2023, resigned hours later. The search has intensified scrutiny of the organization's finances and its ties to public funding.
According to IRS Form 990 filings for 2024 reported by FOX45's Project Baltimore, KEYS Empowers recorded $2,001,754 in revenue—primarily from government grants and contributions—alongside $427,201 in salaries and wages despite listing zero employees. Additional expenses included $79,701 for travel and $242,288 for conferences, conventions, and meetings. The nonprofit's mission focuses on youth leadership, social support, and conflict resolution.
KEYS Empowers received a $1 million American Rescue Plan Act (ARPA) grant in 2022 through Baltimore City for a community center project that remains unbuilt. Related entity KEYS Development TA LLC has billed millions in Medicaid payments, with analyses by Spotlight on Maryland and others estimating $32.3 million from 2018–2024, showing sharp annual increases. A Maryland Inspector General for Health review earlier found the nonprofit must repay over half of $824,000 in state Department of Health funding due to overfunding, poor bookkeeping, and missing documentation.
Baltimore City Public Schools has moved to terminate its contracts with KEYS Development, which provided mental health services and received $98,500 while Muhammad served on the board. The district's ethics panel had been reviewing his disclosures, which initially omitted full details of his nonprofit roles. Connections extend to other appointees, including former secretary roles for Vice Chair Ashiah Parker.
No charges have been filed, and the FBI has not disclosed the investigation's focus. Local outlets including The Baltimore Banner, WBAL, and The Baltimore Sun have documented the events, highlighting broader questions of oversight for taxpayer-funded nonprofits linked to public officials.
The episode underscores potential conflicts in appointments and contracting, with institutional responses like contract terminations and resignations reflecting accountability pressures amid unexplained financial reporting anomalies.
LIMINAL: This case signals heightened scrutiny on politically connected nonprofits in Baltimore, likely spurring audits, ethics reforms, or funding pauses that expose systemic oversight gaps in ARPA and Medicaid disbursements.
Sources (6)
- [1]Baltimore schools cut ties with ex-commissioner’s company after FBI search(https://www.thebanner.com/education/k-12-schools/mujahid-muhammad-keys-development-baltimore-schools-V5PXODFCGVBOFAL2HMW7PSJKYI/)
- [2]Ex-Baltimore school commissioner’s groups got millions in taxpayer money(https://www.thebanner.com/education/k-12-schools/baltimore-school-commissioner-fbi-investigation-tax-money-F5PNTKTPJZDVFH4UY5KEOLW67A/)
- [3]Baltimore School board member resigns after FBI raid, his nonprofit got $1M in COVID funds(https://foxbaltimore.com/news/project-baltimore/baltimore-school-board-member-resigns-after-fbi-raid-his-nonprofit-got-1m-in-covid-funds)
- [4]Baltimore nonprofit raided by FBI claims $427,000 in salaries/wages, reports no employees(https://foxbaltimore.com/news/project-baltimore/keys-empowers)
- [5]FBI raids office of company that received $32 million in tax funds through Medicaid(https://foxbaltimore.com/spotlight-on-maryland/fbi-raids-office-of-company-that-received-32-million-in-tax-funds-through-medicaid)
- [6]Baltimore schools commissioner resigns amid FBI raid on nonprofit business(https://www.wbal.com/baltimore-schools-commissioner-resigns-amid-fbi-raid-on-nonprofit-business-on-liberty-road)