The federal grand jury investigation centers on a $503,000 federal grant awarded in March last year to a Prince George's County project, Diamonds of Opportunity, which targeted youth who had committed crimes.
The Governor's Office of Crime Control and Prevention, which reports to Townsend, rescinded the grant within several months, after problems surfaced. But the office later shifted money to an unrelated not-for-profit organization to settle claims from three people who said they had not been paid for work on the project.
Officials with the crime control office said they had received a subpoena for documents related to the grant. Townsend said the office had complied with the order, and she was confident that money was distributed properly. She said she had not been subpoenaed to appear before a grand jury.
A spokeswoman with the federal Office of Justice Programs said yesterday that the agency would investigate whether the grant money awarded in Prince George's County complied with federal and state guidelines.
Steven P. Amos, executive director of the governor's crime office, released 700 pages of grant-file documents yesterday to buttress his assertions that the agency followed the rules. A spokesman for Gov. Parris N. Glendening said the governor declined to comment.
Townsend said she was concerned that the inquiry might have political roots. U.S. Attorney Thomas M. DiBiagio received the strong backing of Rep. Robert L. Ehrlich Jr., Townsend's likely Republican opponent in the race for governor, before being appointed by President Bush in September.
"I think this is a bunch of political garbage," said Townsend, angered both by news of the probe, first reported in The Washington Post yesterday, and by a call from Ehrlich yesterday for DiBiagio to increase gun crime prosecutions in Baltimore. Townsend said she and others have been making gun-prosecution pleas for months.
"It makes me think that all these Republicans are engaged in political garbage," she said. "They are playing politics with gun violence. They are playing politics with children's lives."
Ehrlich said he was incredulous that Townsend would question DiBiagio's motives in investigating the grants, saying he had not spoken with the U.S. attorney since DiBiagio was sworn in December.
"When you start questioning the integrity of the United States attorney, that's meltdown," he said. "How would I know anything about a grand jury investigation? She's really left the ballpark."
Ehrlich said his campaign had not focused on the crime control office, and that he had little knowledge of its operations. The office oversees millions of dollars yearly in federal grants that pay for many of the programs Townsend champions, including her HotSpot initiative that helps communities fight crime.
DiBiagio did not return phone calls about the investigation. A spokeswoman for his office, Assistant U.S. Attorney Virginia Evans, said she could not confirm or deny accounts of a grand jury probe.
Special Agent Barry A. Maddox, a spokesman for the FBI's Baltimore field office, declined to comment yesterday on the investigation.
The Diamonds of Opportunity program was created after Safe Streets, the Prince George's group with connections to area lawmakers, had been rejected for an earlier grants request.
Crime office employees encouraged Safe Streets to partner with a national group with more experience, and the organization formed an alliance with National Homes Trust, based in Los Angeles, officials said. The governor's crime office then approved $503,000 from a federal Juvenile Accountability Block Grant for the program.
Townsend said that she had no involvement in the awarding of the grant. She said she did not speak with Lawlah or other elected officials about it.
"This is a federal grant, and there are rules and regulations about how they should be awarded," Townsend said.