Usda united states department of agriculture service center. The united states department of agriculture usda
USDA United States Department of Agriculture Service Center. The United States Department of Agriculture USDA

Former USDA Director Sentenced to Prison in $400K Taxpayer Fraud and Kickback Scheme

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2 mins read
August 9, 2026
A former U.S. Department of Agriculture executive was sentenced to two years in federal prison after admitting he used his position to steer nearly $400,000 in government payments to a relative for work prosecutors say was never performed.

WASHINGTON, D.C. – A former senior U.S. Department of Agriculture official has been sentenced to federal prison for orchestrating a years-long fraud scheme that diverted nearly $400,000 in taxpayer money through sham government contract work.

According to the U.S. Attorney’s Office for the District of Columbia, Kirk Perry, 62, of Lorain, Ohio, was sentenced Friday to 24 months in prison after pleading guilty to conspiracy to commit money, property, and honest services wire fraud.

Federal prosecutors said Perry abused his role as a senior director within the USDA’s Office of the Assistant Secretary for Civil Rights by arranging for his nephew, Jamarea Grant, 32, of Cleveland, to be hired through government contractors despite allegedly performing little or no actual work.

Prosecutors say taxpayers lost nearly $400,000

Court records show Grant received approximately $399,319 in government payments between August 2015 and November 2022 for work prosecutors said was never performed.

According to the Justice Department, Perry approved invoices submitted for Grant’s work while simultaneously having access to Grant’s bank account.

Investigators said Perry transferred approximately $125,000 from Grant’s account into his own account as part of the conspiracy.

“Kirk Perry brazenly abused his position of authority and betrayed the public trust by diverting hundreds of thousands of taxpayer dollars for his own benefit,” U.S. Attorney Jeanine Ferris Pirro said.

“Today’s sentence makes clear that he will be required to repay the very funds he siphoned from the American taxpayer and serve a prison term for his conduct. My office will continue to pursue anyone who exploits a government role for personal gain and ensure that taxpayer money is protected from fraud and abuse,” Pirro added.

Investigation uncovered broader hiring scheme

Federal investigators said Perry also used a similar arrangement involving his longtime partner, a cousin by marriage, and a personal acquaintance he had previously coached in basketball.

According to prosecutors, none of those individuals possessed backgrounds, education, or experience in equal employment opportunity matters, yet they obtained work through contracts overseen by Perry.

In addition to his prison sentence, U.S. District Judge Colleen Kollar-Kotelly ordered Perry to serve two years of supervised release and pay $399,319 in restitution.

Grant previously pleaded guilty to the same conspiracy charge in November 2024. His sentencing remains pending.

“The sentence issued today reflects our commitment to thoroughly investigate fraud, waste, and abuse by those entrusted with high-level government positions,” said USDA Office of Inspector General Special Agent in Charge Jeldrys Lowry. “This employee not only abused his authority by ensuring a family member was hired on contracts he oversaw, but he also devised a scheme ultimately to direct these monies to himself.”

Key Points

  • Former USDA executive Kirk Perry was sentenced to two years in federal prison.
  • Prosecutors said the scheme fraudulently billed the government nearly $400,000 for work never performed.
  • Perry was ordered to repay $399,319 in restitution and serve two years of supervised release.

FAQ

  • Who was sentenced?
    Former USDA program director Kirk Perry, 62, of Lorain, Ohio.
  • What was the fraud scheme?
    Prosecutors said Perry arranged for his nephew to receive government contract payments for work that was not performed and diverted part of the money to himself.
  • How much money was involved?
    Approximately $399,319 in taxpayer funds.
  • How long was Perry sentenced?
    Twenty-four months in federal prison, followed by two years of supervised release.
  • Has Perry’s nephew been sentenced?
    No. Jamarea Grant pleaded guilty, and his sentencing is pending.

Source: U.S. Attorney’s Office for the District of Columbia, U.S. Department of Agriculture Office of Inspector General

A former USDA executive was sentenced to two years in federal prison after admitting to a kickback scheme that diverted nearly $400,000 in taxpayer funds.

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