Alan Hayward James, 51, of Texas, pleaded guilty to conspiracy to commit wire fraud, bribery, and conspiracy to rig bids. The charges stem from conduct between April 2016 and April 2025, during which James and his co-conspirators directed supposed competitors on the amounts they should bid to circumvent the competitive bidding process.
According to court documents, the conspirators used the inflated contract costs to pay James, his family members, the family of an Air Force civilian employee, and other co-conspirators. The scheme also involved diverting government funds to pay for an all-expenses-paid multi-day stay at a luxury resort on Oahu's North Shore in 2023.
James agreed to pay at least $1,451,656.80 in restitution to the U.S. Department of War. The plea agreement and information were filed in U.S. District Court in Honolulu, Hawaii.
James faces maximum penalties of 20 years in prison for wire fraud conspiracy, 15 years for bribery, and 10 years for Sherman Act bid-rigging conspiracy. Fines could reach $250,000 to $1 million per count, or potentially double the gain derived from the crime or the victim losses if those amounts exceed the statutory maximums.
Acting Deputy Assistant Attorney General Daniel Glad stated that "Criminals who rig bids and commit fraud on government contracts steal from taxpayers and threaten the public's confidence in government institutions." U.S. Attorney Ken Sorenson for the District of Hawaii added that "Bid-rigging and anti-competitive behavior in government contracts erodes trust in our institutions, harms taxpayers, and will not be tolerated."
The case was prosecuted by the Justice Department's Procurement Collusion Strike Force, a joint effort involving the Department of Defense Office of Inspector General's Defense Criminal Investigative Service, Air Force Office of Special Investigations, and the General Services Administration's Office of Inspector General.
James's sentencing will be determined by a federal district judge considering the U.S. Sentencing Guidelines and other statutory factors.