A former contractor for a program funded by the United States Agency for International Development (USAID) was sentenced over his role in a fraud scheme, according to the Washington, D.C., U.S. Attorney’s Office (USAO).
Stephen Paul Edmund Sutton — a citizen of the U.K. — was extradited to the U.S., according to the USAO’s press release. He pleaded guilty and was sentenced Monday for conspiring to fraudulently obtain grant funds.
The fraud scheme was carried out while he was an employee for a contracting firm that was completing a USAID-funded power distribution program (PDP) in Pakistan, according to U.S. Attorney Jeanine Ferris Pirro and Acting Assistant Inspector General for Investigations Sean Bottary.
“Sutton pleaded guilty to conspiring to commit theft concerning a program receiving federal funds, which is a felony,” the press release said.
Sutton was sentenced to time served, and District Court Judge Amit P. Mehta ordered Sutton’s transfer to immigration authorities.
His co-conspirator was also charged, and his case is pending. (RELATED: EXCLUSIVE: State Department Divide Breaks Open Between Establishment, MAGA Loyalists Over USAID Cuts)
Court documents demonstrated the scheme defrauded the agency of close to $100,000, with Sutton acquiring a minimum of $21,000 in illegal payments, according to the USAO.
As Logistics Operations Manager, Sutton accepted illegal payments of USAID-funds designated for service costs.
“From May through November 2015, Sutton and his co-conspirator—an employee under his supervision—ran a kickback scheme by creating two shell companies, securing PDP purchase orders for forklift and crane services, and pocketing the profits themselves,” the press release stated.
Sutton’s employer, under the PDP contract, subcontracted with Pakistani vendors to provide services. (RELATED: Trump Admin Busts Fraud Ring Enticing Americans Into Bogus Marriages With Illegal Migrants)
“As part of the scheme, his co-conspirator arranged for low-grade local vendors to provide the services for at least half the contract rates, and Sutton ensured that the company paid the invoices despite suspicions raised by an accounts payable officer,” according to the statement.
The United States Energy Association (USEA) implemented the Utility Exchange Program element of PDP, according to its website.
“PDP is a five-year project aimed at working with government-owned electric power distribution companies in Pakistan to improve their performance in the areas of loss reduction, revenue collection and customer service,” USEA stated.
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The Trump administration has tackled wasteful spending, and the State Department announced in March that it was “realigning” some USAID operations by July 1, 2025.
USAID functions that are not aligned with the Trump administration’s policies will be discontinued, according to the State Department.
