UPDATE ON BILLION DOLLAR USAID THEFTS

CASE UPDATE ON THE LARGEST DEMOCRATIC EMBEZZLEMENT IN AMERICAN HISTORY

BY SNN.BZ STAFF

• Guilty Pleas and Charges:
  • Roderick Watson, 57, of Woodstock, Maryland, a former USAID contracting officer, pleaded guilty to bribery of a public official. He admitted to personally receiving over $1 million in bribes, including cash, laptops, NBA suite tickets, a country club wedding, mortgage down payments, cell phones, and jobs for relatives, in exchange for rigging USAID contracts.
  • Walter Barnes, 46, of Potomac, Maryland, owner of PM Consulting Group LLC (Vistant), pleaded guilty to conspiracy to commit bribery of a public official and securities fraud. He paid bribes to Watson and defrauded a Small Business Investment Company (SBIC) to secure a $14 million loan, from which he paid himself a $10 million dividend.
  • Darryl Britt, 64, of Myakka City, Florida, owner of Apprio, Inc., pleaded guilty to conspiracy to commit bribery of a public official. In 2023, he fraudulently induced a private equity firm to purchase a 20% stake in Apprio’s parent company for $4 million and extend a $4 million loan, concealing his bribery activities.
  • Paul Young, 62, of Columbia, Maryland, president of a subcontractor to Vistant and Apprio, pleaded guilty to conspiracy to commit bribery of a public official. He acted as a conduit, funneling bribes from Barnes and Britt to Watson.
  • Corporate Liability: Both Apprio and Vistant admitted criminal liability for bribery and securities fraud, entering three-year deferred prosecution agreements (DPAs) with the Justice Department. They are required to cooperate, implement compliance programs, and report on remediation efforts. Apprio agreed to a $500,000 civil settlement, and Vistant to a $100,000 settlement, due to their financial inability to pay higher penalties.
• Sentencing Schedule:
  • Darryl Britt: Scheduled for July 28, 2025, facing a maximum of five years in prison.
  • Paul Young: Scheduled for September 3, 2025, facing a maximum of five years in prison.
  • Roderick Watson: Scheduled for October 6, 2025, facing a maximum of 15 years in prison.
  • Walter Barnes: Scheduled for October 14, 2025, facing a maximum of five years in prison.
  • As of June 21, 2025, no sentencing has occurred, so no final penalties or prison terms have been confirmed.
• Investigations and Prosecutions:
  • The case is being investigated by the FBI, USAID Office of Inspector General (USAID-OIG), and IRS Criminal Investigation (IRS-CI).
  • Prosecutions are led by Trial Attorneys Matt Kahn and Brandon Burkart of the Justice Department’s Criminal Division Fraud Section, alongside Assistant U.S. Attorney Patrick D. Kibbe for the District of Maryland.
  • The Justice Department has also resolved related Civil False Claims Act investigations with Apprio and Vistant, reflecting a multi-faceted approach to addressing the fraud.
• Public and Political Context:
  • The scandal has fueled calls for oversight of USAID spending, with some, like Senator James Risch, urging a “top-to-bottom” review of the agency’s expenditures.
  • Posts on X have linked the case to broader political narratives, with some users claiming it justifies actions like President Trump’s foreign aid freeze or audit initiatives. These claims lack direct evidence tying the case to such policies, as the DOJ’s prosecution began under the Biden administration.
  • The case has also drawn attention due to USAID’s recent restructuring under the Trump administration, though the bribery scheme predates these changes and is not directly tied to them.