USAID Official, Three Executives Plead Guilty In $550M Bribery Scheme
A USAID contracting officer and three corporate executives have pleaded guilty to orchestrating a decade-long bribery scheme that secured over $550 million in federal contracts, the Justice Department announced on Thursday.
Two companies involved, Apprio, Inc., and PM Consulting Group LLC (doing business as Vistant), admitted criminal liability and entered deferred prosecution agreements.
Roderick Watson, 57, of Woodstock, Maryland, a former USAID contracting officer, admitted to accepting bribes to manipulate contract awards.
Walter Barnes, 46, of Potomac, Maryland, owner and president of Vistant, and Darryl Britt, 64, of Myakka City, Florida, owner and president of Apprio, both pleaded guilty to conspiracy to commit bribery. Britt also pleaded guilty to securities fraud.
Paul Young, 62, of Columbia, Maryland, president of a subcontractor to both companies, pleaded guilty to bribery conspiracy.
Starting in 2013, Watson allegedly accepted bribes from Britt to steer USAID contracts to Apprio, a certified small business under the SBA 8(a) program, which aids disadvantaged firms with exclusive contracting opportunities. After Apprio graduated from the program in 2018, the scheme shifted, with Vistant becoming the prime contractor and Apprio a subcontractor on contracts Watson influenced through 2022.
Britt and Barnes funneled bribes to Watson, often through Young, including cash, laptops, NBA suite tickets, a country club wedding, mortgage down payments, phones, and jobs for Watson's relatives. These were disguised via false payroll entries, shell companies, and fake invoices. Watson allegedly received over $1 million in bribes, using his position to recommend Apprio and Vistant for non-competitive awards, leak sensitive bidding information, provide favorable evaluations, and approve contract decisions.
'The defendants sought to enrich themselves at the expense of American taxpayers through bribery and fraud,' said Matthew R. Galeotti, Head of the Justice Department's Criminal Division. 'Their scheme violated the public trust by corrupting the federal government's procurement process.'
In 2022, Barnes and Watson defrauded a small business investment company (SBIC) by securing a $14 million loan for Vistant, allowing Barnes a $10 million dividend. At Barnes' request, Watson endorsed Vistant's performance to the SBIC, omitting the bribery scheme and inducing the loan agreement. In 2023, Britt misled a private equity firm, also an SBIC, into purchasing a 20% stake in Apprio's parent company for $4 million and extending a $4 million loan, concealing his bribes to Watson.
Apprio and Vistant admitted to bribery and securities fraud, agreeing to three-year deferred prosecution agreements. Both companies must cooperate with the Justice Department, implement compliance programs, and report on remediation efforts. The Justice Department determined that Apprio will pay a $500,000 civil settlement and Vistant $100,000 due to their inability to afford higher penalties without threatening their viability.
'Watson exploited his position at USAID to line his pockets with bribes in exchange for more than $550 million in contracts,' said IRS-Criminal Investigations Chief Guy Ficco. 'IRS-CI works to protect taxpayer dollars and ensure government funds are awarded based on merit — not corruption.'
Watson faces up to 15 years in prison and is scheduled for sentencing on October 6. Barnes, Britt, and Young each face up to five years, with sentencing dates set for October 14, July 28, and September 3, respectively.
'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.
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