UK Citizen Sentenced for USAID-Funded Power Distribution Program Fraud

Strategic Insights -

Stephen Paul Edmund Sutton, a 53-year-old UK citizen, has pleaded guilty and been sentenced to time-served for his participation in a fraud scheme involving a USAID-funded power distribution program in Pakistan. Sutton, employed by a contracting firm that implemented the program, took kickbacks of USAID funds used to pay for services rendered. He was extradited to the US after a two-year fight and pleaded guilty to one count of conspiracy to commit theft concerning a program receiving federal funds.

Key Takeaways:

  • Sutton, a Logistics Operations Manager, took kickbacks of USAID funds used to pay for services rendered as part of a power distribution program in Pakistan.
  • The program, launched in September 2010, was a component of US government assistance to the government of Pakistan to support its energy sector.
  • The main goal of the program was to improve the commercial performance of participating distribution companies through technology upgrades and improvements in processes, procedures, and practices.
  • Sutton's scheme involved creating two companies, obtaining purchase orders for forklift and crane services, and distributing profits to himself and his co-conspirator.
  • The scheme defrauded the US government of almost $100,000, with Sutton receiving at least $21,000 in kickbacks.
  • Sutton's co-conspirator is also charged by indictment and their case is pending disposition.

Statistics:

  • The USAID-funded power distribution program in Pakistan was launched in September 2010 and lasted for five years.
  • The program aimed to improve the commercial performance of participating distribution companies, with a focus on technology upgrades and process improvements.
  • Sutton's kickback scheme defrauded the US government of almost $100,000, with him receiving at least $21,000 in kickbacks.
  • Sutton was extradited to the US after a two-year fight.

Sources:

  • Star Tribune
  • The Straits Times
  • Express Tribune
  • Notice to Readers (20-cr-252 MIL Security OSI)
  • USAID Office of Inspector General