A man from the United Kingdom was sentenced in Washington, D.C., for his role in a fraud scheme while he was a contractor for a U.S. Agency for International Development-funded (USAID) program in Pakistan.
53-year-old Stephen Paul Edmund Sutton pleaded guilty to conspiring to commit theft concerning a program receiving federal funds.
While serving as a logistics operations manager, Sutton stole a portion of USAID funding needed to pay for services. It took over two years for him to be extradited to the United States.
From May to November 2015, Sutton and one of his workers planned a kickback scam to steal federal monies.
In 2010, Pakistan initiated the power distribution program (PDP) to enhance the country’s government-owned electric power distribution firms. The purpose was to alleviate government difficulties, such as insufficient revenue, using technological advancements.
Sutton’s employer used purchase orders with Pakistani suppliers to subcontract for certain goods and services under the PDP contract.
During the plan, Sutton and his co-conspirator acquired purchase orders for forklift and crane services but kept the earnings for themselves.
As part of the ruse, they engaged low-grade local vendors to deliver services for at least half the contract rates, and Sutton ensured that the company paid the invoices despite an accounts payable officer’s suspicions.
The US federal sentencing documents reveal that they defrauded USAID of approximately $100,000. Sutton allegedly collected at least $21,000 in kickbacks.
He pleaded guilty to one count of conspiracy to commit theft involving a federally funded program. He was sentenced to time served plus one day of supervised release.
An indictment also accuses Sutton’s co-conspirator, and his case is still pending.
