By A sweeping federal bribery scandal has ensnared a senior USAID official and three government contractors, who collectively admitted to steering more than half a billion dollars in taxpayer-funded contracts through fraudulent backchannels, the Department of Justice disclosed Friday.
At the center of the scheme is Roderick Watson, a contracting officer at the U.S. Agency for International Development, who confessed to accepting over $1 million in bribes—from stacks of cash to luxury travel and even a lavish country-club wedding—in exchange for awarding lucrative federal contracts to politically connected vendors. The guilty contractors include Walter Barnes III, founder of Visant (formerly PM Consulting Group); Darryl Britt, owner of Apprio Inc.; and Maryland-based subcontractor Paul Anthony Young. All three admitted to conspiracy charges related to the bribery plot, which spanned a decade, from 2013 to 2023, according to The Department of Justice.
In addition, Apprio and Vistant, both of which contracted with USAID, have agreed to admit criminal liability and enter into three-year deferred prosecution agreements (DPAs) in connection with criminal informations filed today in the District of Maryland. As part of these resolutions, both Apprio and Vistant admitted to engaging in a conspiracy to commit bribery of a public official and securities fraud. The DPAs entered into with Apprio and Vistant require each company to, among other obligations, provide ongoing cooperation with and disclosures to the Justice Department, implement a compliance and ethics program, and report to Justice Department regarding remediation and implementation of these compliance measures.
“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. Anybody who cares about good and effective government should be concerned about the waste, fraud, and abuse in government agencies, including USAID. Those who engage in bribery schemes to exploit the U.S. Small Business Administration’s vital economic programs for small businesses — whether individuals or corporations acting through them — will be held to account.”
“Watson was entrusted to serve the interests of the American people — not his own — and his criminal actions for his own personal gain undermine the integrity of our public institutions,” said U.S. Attorney Kelly O. Hayes for the District of Maryland. “Public trust is a hallmark of our nation’s values, so corruption within a federal government agency is intolerable. This office, along with our law enforcement partners, will continue to pursue and prosecute corruption at every level to ensure accountability and protect public trust.”
“The guilty pleas reflect the FBI’s unwavering commitment to holding accountable all those who abuse the authority and responsibility of public service,” said Assistant Director Joe Perez of the FBI’s Criminal Division. “The actions of the defendants in this scheme serve to erode public trust. The FBI is focused on rebuilding this trust and protecting American taxpayers from corruption through investigations such as these.”
“Corruption in government programs will not be tolerated. Watson abused his position of trust for personal gain while federal contractors engaged in a pay-to-play scheme,” said Acting Assistant Inspector General for Investigations Sean Bottary of the USAID Office of Inspector General (USAID-OIG). “USAID-OIG is firmly committed to rooting out fraud and corruption within U.S. foreign assistance programs. Today’s announcement underscores our unwavering focus on exposing criminal activity, including bribery schemes by those entrusted to faithfully award government contracts. We appreciate our longstanding partnership with the Department of Justice in holding accountable those who defraud American taxpayers.”
The scheme exploited the federal 8(a) program, a set-aside initiative intended to bolster minority-, women-, and veteran-owned small businesses, reported The Daily Wire. But instead of empowering disadvantaged firms, Watson and his co-conspirators used it to bypass competitive bidding rules and funnel more than $257 million in no-bid contracts to favored vendors. Prosecutors revealed that when Apprio no longer qualified for the program due to its size, it partnered with Visant as a front, with bribes laundered through Young’s firm to hide the collusion.
The contracts were expansive in scope and vague in detail—ranging from “technical support” to “professional management” to Ebola response services. One award alone reached $95 million. Another $287 million in deals were left unsigned but identified as part of the corrupt pipeline. Investigators say much of the subcontracted work was likely performed by firms outside the disadvantaged business sphere, in direct violation of program rules.
Despite the staggering sums involved, the financial penalties fell far short of the damage. While the DOJ initially proposed $52 million in fines for Apprio and $86 million for Visant, both companies claimed financial distress. In the end, they paid just $500,000 and $100,000, respectively. Watson faces a maximum of 15 years in prison; the others could serve up to five years each.
The revelations come as USAID has been revealed to be often used as merely a slush fund for left-wing activism. Since 2014, federal spending records show that Tides, a leftwing nonprofit, received nearly $28 million in grants, along with its affiliates. While much of this funding was awarded before the Trump administration sought to reduce foreign aid, significant portions were distributed during his tenure through USAID’s Civil Society Innovation Initiative. This program aimed to advance democracy, economic development, and global health, aligning with broader U.S. foreign policy objectives.
Critics argue that federal funds have indirectly supported domestic political activism, including movements that oppose law enforcement and Israeli policies. Parker Thayer, an investigative researcher at the Capital Research Center, condemned the grants, stating that Tides is as left-wing as a donor-advised fund can be and has no business receiving a penny of federal grant money, regardless of what cause the money is being funneled into, noted The Daily Caller.
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