A retired master sergeant in the Air Force on Wednesday pleaded guilty to inflating the cost of information technology contracts for the Pacific Air Forces by at least $37 million to enrich himself and co-conspirators, according to the Department of Justice.
Alan Hayward James, 51, pleaded guilty to conspiracy to commit wire fraud, bribery and conspiracy to rig bids in a federal court in Honolulu.
From April 2016 until about April 2025, James and co-conspirators falsely inflated information technology contracts for Air Force installations across the Pacific. From at least May 2019 until about October 2022, James directed his co-conspirators on the amounts they should bid to circumvent the bidding process for contracts.
James agreed to pay more than $1.4 million in restitution to the Department of Defense.
“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 Daniel Glad, acting deputy assistant attorney general of the Justice Department’s Antitrust Division, in a statement. “The Antitrust Division’s Procurement Collusion Strike Force will detect and prosecute those who rig bids and defraud their government customers.”
James and his co-conspirators channeled bribes to a federal official within the Pacific Air Forces named “Godfather,” according to court records.
They used some of the funds to pay for an all-expenses-paid multiday stay at a luxury resort on the North Shore of Oahu in 2023. They also disbursed funds to James, his family members, the family of an Air Force civilian employee and other co-conspirators.
A federal district court judge will determine James’s sentence.
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