Both Maryland state and federal prosecutors brought indictments against Gov. Larry Hogan’s former chief of staff on Tuesday for misleading the Maryland Environmental Service (MES), a quasi-governmental agency, into paying him a hefty severance package and embezzling funds for personal use.

Roy McGrath was charged by a federal grand jury with six counts and by the state prosecutor in Anne Arundel County with 27 counts for embezzlement, misconduct in office, wiretapping, and theft.

The indictments allege that upon leaving the MES as its director in June 2020 and becoming Hogan’s chief of staff, McGrath allegedly convinced MES board members that Hogan had approved a $233,000 payout. Hogan has maintained that he had no knowledge of the severance package. The allegations also state that McGrath made one of his subordinates falsify timesheets reporting that he had worked during two separate vacations in 2019. In the state prosecutor’s criminal indictment, McGrath is also charged with recording conversations between senior state officials — including Hogan — without their permission.

Maryland’s Acting United States Attorney Jonathan F. Lenzner said in a statement Tuesday that federal and state law enforcement officials intend to hold McGrath accountable.

“Maryland residents should always demand honesty and integrity from those in government, and hopefully this indictment offers the public some level of confidence that we are committed to prosecuting those who violate that trust,” Lenzner said in the statement.

Thomas J. Sobocinski, a special agent with the FBI in Baltimore, conducted an investigation into McGrath’s actions and said in a statement that McGrath misappropriated money for his own benefit.

“From personal travel to even obtaining a certificate from one of the most prestigious universities in the nation, McGrath’s alleged actions were self-serving and ultimately self-sabotaging,” Sobocinski said.

Bruce Marcus, McGrath’s attorney, wrote in a statement to DCist/WAMU Tuesday that while they’re aware of the criminal charges, McGrath has not seen the allegations against him yet. “Mr. McGrath vigorously and categorically denies any criminal conduct. He looks forward to clearing his good name and reputation at a trial on the merits,” Marcus wrote.

If convicted of the federal charges, McGrath faces a 20-year maximum sentence in federal prison for each of the four counts of wire fraud and a 10-year maximum sentence for each of two counts of embezzlement. According to Maryland’s U.S. Attorney’s office, actual sentences for federal crimes are typically less than maximum penalties. McGrath could also face additional prison time for the state charges.

McGrath has an initial circuit court appearance in Anne Arundel County later this month. His first hearing in the U.S. District Court in Baltimore has yet to be set.

The charges against McGrath come after an investigation and multiple oversight hearings by a group of state Senate lawmakers last year. Senate President Bill Ferguson (D-Baltimore City) said in a statement Tuesday that the charges “sadly confirmed what the legislature learned during the last year through oversight hearings.”

An independent audit conducted last year as part of the Senate oversight found that at least $55,800 of McGrath’s expense reports to MES had issues, including that McGrath was reimbursed for more than the appropriate amount based on the agency’s policies and that he submitted expenses after leaving the agency.

When Senate lawmakers questioned McGrath under subpoena in virtual hearing in December, they were left with more questions than answers; citing his attorney’s guidance, McGrath largely avoided answering most questions.

Earlier this year, lawmakers passed a bill to reform MES. The new law restructures the board to limit the power of the executive director. The director remains the head of the MES’s five-member board, but does not have voting power. The board will also select a treasurer and a secretary from among its members rather than having those roles be appointed by the director. The new law also sets limits on the amount of money board members are allowed to expense to the agency — $500 — before it must be reviewed by the board.