BALTIMORE — Three Maryland men are pleading guilty to federal fraud and bribery charges after investigators shut down their long lasting scheme involving taxpayer funded government contracts.
One of the individuals is Roderick Watson, a 57-year-old from Woodstock who worked as a contracting officer with the United States Agency for International Development, better known as USAID.
His co-conspirators are identified as Walter Barnes, 46 of Potomac, Paul Young, 62 of Columbia, and Darryl Britt, 64, who lives out-of-state, in Florida.
The foursome plotted to illegally benefit from 14 contracts worth more than $550 million.
According to the Department of Justice, two companies contracted with USAID were tied up in the scheme, including Apprio and Vistant.
Prosecutors say the plan came together sometime in 2013 when Watson took bribes from Britt in exchange for USAID contracts being awarded to Apprio, a small business that was supposed to help other socially and economically disadvantaged businesses.
Once Apprio had reached its limit and was no longer eligible for federal grants, Watson made a deal with Britt and Barnes to pass the contracts onto its subcontracting company, Vistant.
In doing so, the money was often passed through Young who managed another subcontractor tied to Apprio and Vistant.
As result of Vistant's status as a "federal contractor," Barnes was able to induce a licensed small business investment company to provide a $14 million loan in exchange for stock in the company. Barnes allegedly ended up paying himself $10 million from that loan.
Then in 2023 Britt, on behalf of Apprio, fraudulently induced a private equity firm to purchase a 20 percent stake in its parent company for $4 million and extended stock shares.
All these deals were thanks to Watson vouching for Apprio and Vistant.
"Britt and Barnes also regularly funneled bribes to Watson, including 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," the DOJ alleges. "The bribes were also often concealed through electronic bank transfers falsely listing Watson on payroll, incorporated shell companies, and false invoices. Watson is alleged to have received bribes valued at more than approximately $1 million as part of the scheme."
Watson faces a maximum sentence of 15 years in federal prison. He's scheduled to be sentenced October 6.
“Watson exploited his position at USAID to line his pockets with bribes in exchange for more than $550 million in contracts. While he helped three company owners and presidents bypass the fair bidding process, he was showered with cash and lavish gifts," said Guy Ficco, Chief, IRS Criminal Investigation.
“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 USAID OIG Acting Assistant Inspector General for Investigations Sean Bottary.
Young, Britt and Barnes each face five-year maximum sentences.
USAID has come under the national spotlight since President Donald Trump retook the White House in January.
The agency became one of the biggest targets of Elon Musk's Department of Government Efficiency.
Musk and company all but dismantled USAID, claiming to have uncovered millions in government waste, fraud, and abuse.
DOGE's slashing of USAID continues to be the subject of multiple federal lawsuits, including here in Maryland where a judge tried unsuccessfully to oust Musk from USAID.
MORE: Maryland judge who ruled to oust Elon Musk & DOGE from USAID hit with articles of impeachment
Despite these indictments uncovering at least some allegations of fraud within USAID, Maryland Attorney General Anthony Brown is still in court defending the agency.
On Friday, Brown joined 22 other State Attorneys General in filing an amicus brief before the D.C. Federal Circuit Court of appeals, opposing the Trump Administration's decision to withhold billions of dollars in USAID funding appropriated by Congress under former President Joe Biden.
“This unlawful withholding of funds hurts Maryland organizations that serve immigrants and refugees and has cost hundreds of Marylanders their jobs," said Brown.
Earlier this year, a Biden appointed judge ruled in favor of the States, only to be reeled in by the U.S. Supreme Court who determined payments should only go out for work already completed.
Around the same time another D.C. based judge, appointed by Trump, ruled in favor of the White House's plan to place thousands of USAID workers on leave.
Secretary of State Marco Rubio has since terminated around 90 percent of USAID contracts.
Among the hardest hit locally is Johns Hopkins University, who lost $800 million is USAID grants since January.
This forced JHU to eliminate more than 2,000 jobs across 44 countries that were primarily funded by USAID.
RELATED: Federal government poised to cut Maryland funding by more than double
Hopkins is hardly the only Maryland based entity affected by the cuts.
Global Refuge, a non-profit specializing in resettling foreign nationals admitted into the U.S., also lost hundreds-of-millions.
U.S. Secretary of State Marco Rubio has since terminated 90 percent of USAID contracts, with the help of Elon Musk and his Department of Government Efficiency (DOGE).
As result, many of the agency's workers have been placed on leave.