Baltimore Police announced murder charges Sunday against 52-year-old Keith Smith and his daughter, 28-year-old Valeria Smith. Both were arrested in Harlingen, Texas.
Police Commissioner Michael Harrison said at a news conference that the two were preparing to leave the country.
Jacquelyn Smith was stabbed to death late last year in Baltimore.
Her husband said she rolled down the window to give money to a panhandler and was stabbed when the panhandler tried to rob her.
The crime attracted national attention and prompted many people to regard panhandlers warily.
Harrison said at the news conference that the concocted story took advantage of negative perceptions of Baltimore crime.