Latest news with #Vistant
New York Post
a day ago
- Business
- New York Post
USAID official pleads guilty to taking part in $550M bribery scheme: ‘Violated the public trust'
A federal contracting officer and three businessmen pleaded guilty Thursday to participating in a $550 million bribery scheme involving the embattled US Agency for International Development (USAID). Roderick Watson, of Maryland, is alleged to have received bribes valued in excess of $1 million while working at USAID in exchange for using his position as a trusted overseer of taxpayer money to direct 14 prime federal contracts to two consulting companies, Apprio and Vistant. Watson, 57, pleaded guilty to bribery of a public official and faces up to 15 years in prison. He's scheduled to be sentenced in October. Advertisement As part of the elaborate scheme, Walter Barnes, owner of Vistant, and Darryl Britt, owner of Apprio, used Paul Young, the president of a subcontractor used by both Vistant and Apprio, as a middleman to conceal some of the bribes destined for Watson, according to the Justice Department. The Trump administration has worked to dismantle USAID, alleging widespread waste, fraud and abuse. AFP via Getty Images The three businessmen each pleaded guilty to conspiracy to commit bribery of a public official. Barnes pleaded guilty to securities fraud as well. Advertisement The scheme dates back to 2013, when Watson, working as a USAID contracting officer, agreed to use his influence at the government agency to steer contracts to Britt's Apprio firm in exchange for bribes, according to the DOJ. Britt's company had been eligible for lucrative federal contracts as a designated 'socially and economically disadvantaged' business by the Small Business Administration (SBA). When Apprio 'graduated' from the SBA 8(a) program, the scheme shifted, and Watson began awarding prime contracts to Barnes' Vistant company – an Apprio subcontractor – between 2018 and 2022, in exchange for bribes. The USAID official received 'cash, laptops, thousands of dollars in tickets to a suite at an NBA game, a country club wedding, downpayments on two residential mortgages, cellular phones, and jobs for relatives,' from the three businessmen as part of the scheme. Advertisement Shell companies, fake invoices and fraudulent payroll sheets were all used to hide the corruption, according to the DOJ. Barnes, 46, Britt, 64, and Young, 62, each face a maximum of five years behind bars. 'The defendants sought to enrich themselves at the expense of American taxpayers through bribery and fraud,' Matthew Galeotti, head of the Justice Department's Criminal Division, said in a statement. 'Their scheme violated the public trust by corrupting the federal government's procurement process. 'Anybody who cares about good and effective government should be concerned about the waste, fraud, and abuse in government agencies, including USAID,' he added. 'Those who engage in bribery schemes to exploit the US Small Business Administration's vital economic programs for small businesses — whether individuals or corporations acting through them — will be held to account.' Advertisement The USAID contracting officer faces up to 15 years in prison. Billionaire entrepreneur Elon Musk made USAID one of his first targets for sweeping cuts when he led the Trump administration's Department of Government Efficiency (DOGE). In February, President Trump declared that USAID's spending was mostly 'corrupt or ridiculous,' adding, 'the whole thing is a fraud,' in remarks from the Oval Office. Musk has alleged that the agency is run like a 'criminal organization' by a 'viper's nest of radical left Marxists who hate America.' DOGE slashed more than $8 billion in funding and fired nearly all USAID employees and contractors as part of its efforts to dismantle the agency.
Yahoo
a day ago
- Business
- Yahoo
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.
