Former USAID contracting officer, three corporate executives plead guilty to $550M federal contract bribery scheme

• Former USAID contracting officer Roderick Watson and three corporate executives pleaded guilty to a decade-long bribery scheme that secured over $550 million in federal contracts through corruption.
• The scheme involved Apprio, Inc. and PM Consulting Group LLC (Vistant), which benefited from Watson’s influence over contract awards, non-competitive deals and leaked procurement information from 2013 to 2022.
• Watson received more than $1 million in bribes, including cash, luxury perks, mortgage assistance and jobs for relatives, funneled through shell companies and intermediaries like subcontractor Paul Young.
• In 2022 and 2023, executives also defrauded investment firms for multimillion-dollar loans by concealing the ongoing bribery, with Barnes and Britt securing $14 million and $8 million in fraudulent funding, respectively.
• Watson faces up to 15 years in prison, while the others face up to 5 years. Federal officials condemned the corruption as a betrayal of public trust and a serious abuse of programs meant to help disadvantaged businesses.

A former U.S. Agency for International Development (USAID) contracting officer and three corporate executives have pleaded guilty to operating a decade-long bribery and fraud scheme that steered more than $550 million in federal contracts to favored companies in exchange for illegal payments and favors.

The scheme, which began in 2013, involved Roderick Watson, 57, of Woodstock, Maryland, who admitted to accepting over $1 million in bribes while at USAID. Watson used his position to manipulate procurement decisions in favor of Apprio, Inc. and PM Consulting Group LLC, which does business as Vistant. It initially centered around Apprio, which was certified under the Small Business Administration’s 8(a) program – a designation intended to provide economically and socially disadvantaged firms with exclusive contracting opportunities.

According to the Department of Justice (DOJ), after Apprio “graduated” from the 8(a) program in 2018, the fraud shifted gears: Vistant became the primary federal contractor, with Apprio serving as a subcontractor. From 2013 through 2022, Watson directed non-competitive contracts, leaked procurement information, gave favorable evaluations and approved decisions to ensure lucrative deals for both companies.

In exchange, Watson received an array of bribes funneled through shell companies and intermediaries, including Paul Young, 62, of Columbia, Maryland, who served as president of a subcontractor for both firms. The bribes included cash payments, laptops, NBA luxury suite tickets, a country club wedding, mortgage down payments, mobile phones and jobs for Watson’s family members.

Walter Barnes, 46, president of Vistant, and Darryl Britt, 64, president of Apprio, both pleaded guilty to conspiracy to commit bribery. Britt also admitted to securities fraud, as did Young, who pleaded guilty to bribery conspiracy. (Related: Federal judge upholds Trump administration’s USAID contract terminations.)

In 2022, Barnes and Watson defrauded a Small Business Investment Company (SBIC) to secure a $14 million loan for Vistant. Barnes used $10 million from the loan to pay himself a dividend, with Watson falsely vouching for Vistant’s performance. The following year, Britt misled another SBIC, a private equity firm, into investing $4 million in Apprio’s parent company and issuing an additional $4 million loan, while concealing his bribery payments to Watson.

Watson, who pleaded guilty to bribery of a public official, faces up to 15 years in prison. He is scheduled to be sentenced on Oct. 6. Meanwhile, the other three defendants, Barnes, Britt and Young, face up to five years each. Sentencing is scheduled for Oct. 14, July 28 and Sept. 3, respectively.

Federal officials criticize Watson for undermining public trust

In line with the guilty pleas, federal officials sharply criticized Watson for betraying his public duty and undermining trust in the government.

“Public trust is a hallmark of our nation’s values, so corruption within a federal government agency is intolerable,” said U.S. Attorney Kelly O. Hayes for the District of Maryland. “This case underscores our commitment to holding public officials and corporate executives accountable when they conspire to defraud the American people.”

Internal Revenue Service (IRS) Criminal Investigations Chief Guy Ficco stressed that taxpayer dollars must be safeguarded, stating, “Government funds must be awarded based on merit – not corruption.”

Matthew Galeotti, head of the DOJ Criminal Division, condemned the scheme as a blatant abuse of the procurement system: “The defendants sought to enrich themselves at the expense of American taxpayers through bribery and fraud. Their scheme violated the public trust by corrupting the federal government’s procurement process.”

“Anyone who cares about effective government should be alarmed by the waste and abuse exposed in this case. We will continue to pursue those who exploit programs intended to support small businesses,” he added.

Visit BigGovernment.news for more stories about corruption at the USAID.

Watch the video below where a GOP congressman praised Elon Musk for doing the right thing in closing USAID.

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Sources include:

The NationalPulse.com

DallasExpress.com

NewYorkPost.com

Brighteon.com