WASHINGTON—Stephen Paul Edmund Sutton, a 53-year-old citizen of the United Kingdom, has been extradited to the United States, where he pleaded guilty and was sentenced for his involvement in a fraud scheme. The scheme occurred while Sutton was employed by a contracting firm that implemented a U.S. Agency for International Development-funded (USAID) power distribution program (PDP) in Pakistan. This information was announced by U.S. Attorney Jeanine Ferris Pirro and Acting Assistant Inspector General for Investigations Sean Bottary.
Sutton admitted to conspiring to commit theft concerning a program receiving federal funds, which is classified as a felony. As a Logistics Operations Manager, he accepted kickbacks from USAID funds used to pay for services rendered. After resisting extradition for over two years, Sutton was brought to the United States. District Court Judge Amit P. Mehta sentenced him to time-served and ordered his transfer to immigration authorities.
He faced one count of conspiracy to commit theft related to federal funds and received a sentence of time-served along with one day of supervised release.
Court documents reveal that the PDP was part of U.S. government assistance aimed at supporting Pakistan's energy sector. Initiated in September 2010, this five-year program sought improvements in Pakistan’s state-owned electric power distribution companies through governance interventions and projects addressing technical losses and revenue collection issues. The main objective was enhancing commercial performance via technology upgrades and process improvements.
From May through November 2015, Sutton and an employee under his supervision engaged in a kickback scheme by creating two companies that obtained PDP purchase orders for forklift and crane services. They distributed profits among themselves while using low-grade local vendors who provided services at reduced rates compared to contract terms. Despite suspicions from an accounts payable officer, Sutton ensured payment of invoices by the company involved in this fraudulent activity.
U.S. government sentencing documents report nearly $100,000 defrauded from the agency, with Sutton personally receiving at least $21,000 in kickbacks.
The co-conspirator faces charges by indictment with their case still pending disposition.
The investigation into this case was conducted by the USAID Office of Inspector General with prosecution led by Assistant United States Attorney Emily Miller alongside former Special Assistant United States Attorneys Scot Morris and Nicholas Coates from the Fraud, Public Corruption, and Civil Rights Section. Significant assistance came from the Justice Department’s Office of International Affairs in securing Sutton's arrest and extradition from the UK.
