USAID program contractor defrauds taxpayers of $100,000 in latest agency scandal

A former contractor with a program funded by the U.S. Agency for International Development admitted to defrauding taxpayers of nearly $100,000, according to the U.S. Attorney’s Office.

On Monday, Stephen Paul Edmund Sutton, a 53-year-old United Kingdom citizen, pleaded guilty to participating in a fraudulent kickback scheme from May through November 2015.

‘This is why shutting down USAID is such a good policy.’

Sutton, employed through a contracting firm, previously worked as a logistics operations manager on a power distribution program in Pakistan that USAID funded.

The program, launched in September 2010, aimed to support Pakistan’s energy sector by facilitating improvements to the country’s “government-owned electric power distribution companies.”

The U.S. Attorney’s Office explained, “The main goal of the PDP was to improve the commercial performance of the participating distribution companies through technology upgrades and improvements in processes, procedures, and practices, as well as training and capacity building. Under the PDP contract, Sutton’s employer subcontracted through purchase orders with vendors in Pakistan for certain goods and services.”

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Photo by Kevin Dietsch/Getty Images

While employed, Sutton received “kickbacks of USAID funds used to pay for the services rendered.”

After battling extradition for over two years, he pleaded guilty on Monday to “one count of conspiracy to commit theft concerning a program receiving federal funds.”

Sutton was sentenced to time served and turned over to federal immigration authorities.

Sutton’s supervisor also allegedly participated in the scheme. They apparently created two companies to obtain purchase orders for equipment. However, they reportedly distributed the profits to themselves by hiring “low-grade local vendors” to perform the work at a fraction of the contract rates.

“U.S. government sentencing documents indicate the agency was defrauded of almost $100,000 and that for his part, Sutton received at least $21,000 in kickbacks,” the U.S. Attorney’s Office stated. “Sutton’s co-conspirator is also charged by indictment, and his case is pending disposition.”

A State Department spokesperson told Blaze News, “This recent legal victory in federal court delivers much-needed accountability on an individual who conspired to steal tens of thousands of dollars from American taxpayers and divert resources away from lifesaving assistance.”

“It is also just another reason why ensuring foreign aid contracts have proper oversight under the State Department is crucial to the future of how America administers aid,” the spokesperson added.

USAID waste

Since President Donald Trump began his second term, USAID has been heavily scrutinized for its wasteful spending and vulnerability to fraudulent activity.

The Department of Government Efficiency previously uncovered millions of dollars in wasteful spending on propaganda, climate hysteria, LGBT advocacy, and diversity, equity, and inclusion initiatives.

As a result, the Trump administration has pushed to significantly restructure USAID, including moving it under the domain of the Department of State and eliminating most of its programs.

Oversight Project President Mike Howell told Blaze News, “A great way to prevent fraud and abuse in government spending is to throw less money around third-world countries that passes through the hands of contractors and other entities. The idea that we can ever competently and safely spend money in those regions without it being siphoned off is lunacy. This is why shutting down USAID is such a good policy.”

Editor’s note: Mike Howell is a contributor to Blaze News.

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