Alan Hayward James Pleads Guilty to $37M Bid Rigging Scheme

MENU News

• All News
• Blogs
• Photo Galleries
• Podcasts
• Press Releases
• Speeches
• Videos

Archived Press Releases

Archived News

Press Release

Former Member of the Air Force Pleads Guilty to Multi-Year Bid Rigging Schemes and Conspiracy to Defraud U.S. Air Force

Thursday, April 2, 2026

Share For Immediate Release Office of Public Affairs The Nine-Year Scheme Defrauded the Military of $37 Million for Information Technology Contracts Serving U.S. Air Force Installations Across the Pacific A former active-duty Master Sergeant of the U.S. Air Force pleaded guilty yesterday 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 Antitrust Division’s Procurement Collusion Strike Force will detect and prosecute those who rig bids and defraud their government customers.”

“Through this bid-rigging scheme, the defendant not only stole from American taxpayers and harmed companies seeking to compete honestly for government contracts, he also ultimately harmed essential military services designed to keep our nation safe by diverting resources away from other services,” said U.S. Attorney Ken Sorenson for the District of Hawaii. “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.”

“James’s guilty plea acknowledges his role in a long-running conspiracy to rig bids and defraud the U.S. government for personal financial gain,” said Special Agent in Charge John E. Helsing of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Western Field Office. “DCIS, along with our law enforcement partners and the U.S. Department of Justice, will aggressively investigate those who seek to enrich themselves through fraudulent schemes targeting the U.S. Department of Defense and American taxpayers.”

“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.”

“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.”

According to a plea agreement and information filed in the U.S. District Court in Honolulu, Hawaii, from at least April 2016 until about April 2025, James and his coconspirators falsely inflated 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. As part of this scheme, the conspirators 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. Also, from at least May 2019 until about October 2022, the defendant directed co-conspirators — who were supposed to be competitively bidding against one another to win government contracts — on the amounts they should bid to circumvent the competitive bidding process. As a result of the defendant’s actions, the government overpaid for IT contracts by at least $37 million.

The maximum penalty for conspiracy to commit wire fraud is 20 years in prison and a $250,000 fine. The maximum penalty for bribery is 15 years in prison and a fine of either $250,000 or three times the monetary value of the bribe, whichever is greater. The maximum penalty for a conspiracy to rig bids in violation of the Sherman Act for an individual is 10 years in prison and a $1 million fine. The fines may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fines. James agreed to pay a restitution of at least $1,451,656.80 to the Department of War. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The Antitrust Division’s San Francisco Office and the U.S. Attorney’s Office for the District of Hawaii are prosecuting the case, which was investigated with the assistance of DOD-OIG-DCIS, AFOSI, and GSA-OIG. Rebecca A. Bers, Don Daniel, Matthew Chou, and Albert B. Sambat of the Antitrust Division’s San Francisco Office, and Darren W.K. Ching of the U.S. Attorney’s Office for the District of Hawaii, are prosecuting this case.

The Justice Department’s Procurement Collusion Strike Force (PCSF) is a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government — federal, state and local. To learn more about the PCSF, or to report information on bid rigging, price fixing, market allocation and other anticompetitive conduct related to government spending, go to www.justice.gov/procurement-collusion-strike-force.

Whistleblowers who voluntarily report original information about antitrust and related offenses that result in criminal fines or other recoveries of at least $1 million may be eligible to receive a whistleblower reward. Whistleblower awards can range from 15 to 30 percent of the money collected. For more information on the Antitrust Whistleblower Rewards Program, including a link to submit reports, visit www.justice.gov/atr/whistleblower-rewards.

Updated April 2, 2026 Topic Antitrust Components Antitrust Division USAO - Hawaii Press Release Number: 26-311

Related Content

Press Release Justice Department Sues New York-Presbyterian Hospital for Anticompetitive Contracts That Increase Healthcare Costs for New Yorkers The Justice Department’s Antitrust Division, together with the U.S. Attorney’s Office for the Southern District of New York, filed a civil antitrust lawsuit today challenging The New York and Presbyterian...

March 26, 2026

Speech Fueling Innovation: Antitrust and Intellectual Property in Support of American Technological Leadership Washington

March 25, 2026

Speech It’s Not Personal Sonny, It’s Strictly Business: Aggressive Enforcement to Protect a Free Market Washington

March 23, 2026