Justice Department: Air Force overpaid $37M on rigged contracts

A former active-duty U.S. Air Force master sergeant pleaded guilty to inflating the costs of IT contracts for the Pacific branch of the Air Force by at least $37 million, the Justice Department said Thursday. Alan Hayward James of Texas pleaded guilty to conspiracy to commit wire fraud, bribery, and conspiracy to rig bids, according to a plea agreement filed in a Hawaii court. He also agreed to pay restitution of more than $1.4 million to the Defense Department.

James admitted to committing the crimes from 2016 to 2025 along with multiple accomplices, including a public official. The group allegedly used the excess funds gained from the inflated contracts to enrich themselves and distribute bribes, according to the Justice Department.

What penalties could James face when sentenced? If given maximum penalties, he could spend a combined 45 years in prison and have to pay fines in addition to the $1.4 million restitution.

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