Alan Hayward James, Bid Rigging & Bribery, Texas 2026

A former active-duty Master Sergeant of the U.S. Air Force has pleaded guilty to fraudulently inflating the cost of information technology (IT) contracts for the U.S. Pacific Air Forces (PACAF) by at least $37 million — and using the excess funds to enrich himself, enrich co-conspirators, and channel bribes to a federal public official in PACAF whom the conspirators nicknamed “Godfather.”

The defendant, Alan Hayward James, 51, of Texas, pleaded guilty to conspiracy to commit wire fraud, bribery, and conspiracy to rig bids. James also agreed to pay over $1.4 million in restitution to the U.S. Department of War.

“Over thirty-seven million dollars — that’s how much the U.S. Air Force overpaid because of the scheme that the defendant admitted to, under oath and in open court.” said Acting Deputy Assistant Attorney General Daniel Glad of the Justice Department’s Antitrust Division. “Criminals who rig bids and commit fraud on government contracts steal from taxpayers and threaten the public’s confidence in government institutions.

The scheme, which lasted from at least April 2016 until about April 2025, involved James and his coconspirators falsely inflating the cost of IT contracts serving U.S. Air Force installations across the Pacific. James and his coconspirators agreed to use the excess funds to pay James, James’ family members, the family of an Air Force civilian employee, and other co-conspirators.

“This case highlights the capabilities and strength of joint investigative efforts to defend and protect sensitive Department of War (DoW) acquisition systems,” said Special Agent Nicole Vanourek of the Air Force Office of Special Investigations (AFOSI), Procurement Fraud. “Ensuring companies adhere to robust contracting requirements is integral to maximizing the Air Force’s lethality and readiness to address evolving security challenges.

According to a plea agreement and information filed in the U.S. District Court in Honolulu, Hawaii, James and his coconspirators diverted government funds to pay for an all-expenses-paid multi-day stay at a luxury resort on the North Shore of Oahu in 2023.

Bid-rigging and anti-competitive behavior in government contracts erodes trust in our institutions, harms taxpayers, and will not be tolerated. We will continue to investigate and prosecute any and all who would seek to manipulate markets and undermine fair competition for their own personal gain.

Alan Hayward James is awaiting sentencing. The case is a clear example of the severity of the consequences for those who engage in bid-rigging and corrupt practices.

“Bribery, bid rigging, and wire fraud are not victimless crimes; they erode public trust, distort fair competition, and harm honest businesses who play by the rules,” said Special Agent in Charge Christopher Bjornstad of the U.S. General Services Administration (GSA) Office of Inspector General (OIG) Western Investigations Division. “GSA OIG special agents and our law enforcement partners remain committed to pursuing those who engage in procurement fraud.”

Source: https://www.justice.gov/opa/pr/former-member-air-force-pleads-guilty-multi-year-bid-rigging-schemes-and-conspiracy-defraud