Ex-Air Force Sergeant Pleads Guilty to $37M Fraud Scheme

A former U.S. Air Force master sergeant pleaded guilty in federal court in Honolulu on Wednesday to orchestrating a nine-year fraud scheme that defrauded the military of at least $37 million through inflated information technology contracts for Pacific installations.

Alan Hayward James, 51, of Texas, admitted to conspiracy to commit wire fraud, bribery, and conspiracy to rig bids. The scheme, which ran from April 2016 to April 2025, targeted IT services for U.S. Pacific Air Forces bases in Hawaii, Japan, Korea, and elsewhere. James, who handled contract drafting, collaborated with at least 11 coconspirators and eight companies to artificially increase costs for materials, labor, and other elements, the Justice Department said. He directed competitors to submit specific bids, ensuring favored companies won at higher prices while others overbid to avoid selection.

Excess funds, totaling over $37 million in overpayments, were funneled through shell companies like T.R.A.P. LLC, which James established in 2017. Prosecutors detailed how the money supported false salaries and perks for James, his family, and relatives of a bribed federal public official nicknamed "Godfather." Ledgers...