A former contractor involved in a fraudulent scheme linked to a USAID-funded program in Pakistan has been brought to justice on U.S. soil. Stephen Paul Edmund Sutton, 53, a British citizen, has been convicted and sentenced after being extradited to the United States, confirmed by the U.S. Attorney's Office. Sutton, who served as a Logistics Operations Manager, was involved in a scheme that diverted grant funds through fraudulent methods.
After a prolonged extradition battle lasting over two years, Sutton finally faced a U.S. court. District Court Judge Amit P. Mehta sentenced him to time already served in custody and prescribed one day of supervised release. According to the U.S. Attorney's Office, Sutton pleaded guilty to one count of conspiracy to commit theft concerning a program that received federal funds, which is a felony offense. This charge stems from his role in creating illegitimate companies and inflating invoices for personal gain.
For his fraudulent activities between May and November 2015, Sutton, alongside an indicted co-conspirator, organized a fraudulent kickback scheme utilizing mock companies to secure PDP purchase orders for forklift and crane services. court documents reveal the pair then subcontracted the actual work to low-cost local vendors, pocketing the difference. Specifically, Sutton made sure the inflated invoices were paid, despite reservations voiced by an accounts payable officer at his company. The U.S. government, ultimately, was shortchanged by nearly $100,000.
The PDP, part of U.S. assistance aimed at supporting Pakistan's energy sector, was affected by the fraud, leading to compromised improvements in Pakistan’s electric power distribution networks. U.S. Attorney's Office documents report that Sutton's individual take from these illegal activities accounted for at least $21,000. The case against Sutton's co-conspirator is ongoing. The case was prosecuted by Assistant United States Attorney Emily Miller, with significant support from former Special Assistant United States Attorneys Scot Morris and Nicholas Coates of the Fraud, Public Corruption, and Civil Rights Section.
The arrest and extradition of Sutton from the United Kingdom were coordinated through the joint efforts of the USAID Office of Inspector General and the Justice Department’s Office of International Affairs, reflecting the scope of U.S. law enforcement in addressing international fraud involving federal funds. With Sutton’s sentencing, authorities have taken a step toward resolving the misuse of resources intended to support energy infrastructure development.
