Former U.S. Air Force Master Sergeant pleads guilty to $37 million fraud scheme

Crime Diary, North America

INTERNATIONAL, 3 April 2026 (NPA) — A former U.S. Air Force Master Sergeant has pleaded guilty to orchestrating a nine‑year bid‑rigging and fraud scheme that defrauded the military of at least $37 million in inflated information technology contracts across Pacific installations.

Alan Hayward James, 51, of Texas, admitted in federal court to conspiracy to commit wire fraud, bribery, and bid‑rigging. Prosecutors said James and his co‑conspirators manipulated contract bids between 2016 and 2025, directing supposed competitors on how much to bid to circumvent fair competition. The excess funds were used to enrich James, his family, associates, and even a civilian Air Force employee nicknamed “Godfather.”

According US Justice Department statement, today, regarding the court filings, the scheme diverted government money for personal luxuries, including a multi‑day stay at a North Shore Oahu resort in 2023. James has agreed to pay more than $1.4 million in restitution to the Department of War.

Justice Department officials condemned the fraud as a betrayal of public trust. “Criminals who rig bids and commit fraud on government contracts steal from taxpayers and threaten confidence in government institutions,” said Acting Deputy Assistant Attorney General Daniel Glad. U.S. Attorney Ken Sorenson added that the scheme harmed both honest businesses and essential military services.

Investigators from the Defense Criminal Investigative Service, Air Force Office of Special Investigations, and the General Services Administration Office of Inspector General emphasized that procurement fraud undermines readiness and erodes trust in institutions.

James faces severe penalties: up to 20 years in prison for wire fraud, 15 years for bribery, and 10 years for bid‑rigging, along with fines that could reach millions of dollars. A federal judge in Honolulu will determine his sentence after reviewing U.S. Sentencing Guidelines.

The case was prosecuted jointly by the Justice Department’s Antitrust Division and the U.S. Attorney’s Office for the District of Hawaii.