Former USAID Contractor Sentenced for Fraud
A prime contractor involved in a program funded by the United States Agency for International Development (USAID) has recently been sentenced in Washington, DC, for his part in a fraud scheme.
Stephen Paul Edmund Sutton, a British national, was extradited to the U.S. and pleaded guilty to conspiracy charges related to obtaining grants fraudulently, according to a press release from the U.S. Attorney’s Office (USAO). His sentencing took place on Monday.
U.S. lawyer Jeanine Ferris and investigator Shawn Boccary mentioned that the fraudulent activities occurred while Sutton was an employee at a contracting firm that had worked on a USAID-funded Power Distribution Program (PDP) in Pakistan.
“Sutton pleaded guilty to conspiracy to commit theft in association with a program funded by federal money,” the press release elaborated.
As part of the sentencing, district court judge Amit P. Mehta ordered Sutton to be transferred to the Immigration Bureau. Meanwhile, his co-conspirators have also been charged, with their cases still pending.
According to court documents cited by the USAO, the fraudulent scheme involved misappropriating nearly $100,000, including Sutton receiving at least $21,000 in illicit funds.
In his role as logistics operations manager, Sutton accepted unlawful payments meant for designated USAID funds linked to service costs.
“From May to November 2015, Sutton and his co-conspirators created two shell companies, obtained PDP purchase orders for crane and forklift services, pocketed the profits, and operated kickback schemes,” the press release stated.
Sutton’s employer had subcontracted with a vendor in Pakistan to fulfill the PDP agreement. The scheme involved arranging for a low-quality local vendor to provide services at a fraction of the contract rate, while Sutton ensured the company covered the costs despite issues raised by the payment officer’s account.
The Utility Exchange Program, part of the PDP, aims to enhance performance among government-owned electricity distributors in Pakistan, focusing on areas like revenue collection and customer service.
Additionally, the Trump administration has been making efforts to address wasteful spending, with plans to reorganize USAID strategies by July 2025. The State Department has indicated that functions not aligning with the administration’s policies will be cut.
