Former Member of Air Force Pleads Guilty to Rigging Bids and Conspiring to Defraud U.S. Military

Posted April 15, 2026

By the Constantine Cannon Whistleblower Team

The government continues its efforts to root out and prosecute bid rigging and procurement collusion. On April 1, 2026, Alan Hayward James, a former active-duty Master Sergeant of the U.S. Air Force and a Contracting Officer’s Representative, pleaded guilty for his role in a years-long scheme that defrauded the U.S. military of $37 million in connection with IT contracts.[1]

What Was the Scheme?

According to the DOJ’s press release announcing the guilty plea, James and his coconspirators “falsely inflated the cost of IT contracts serving U.S. Air Force installations across the Pacific.”[2] The Plea Agreement states that James conspired with others to “build excess funding into government contracts that was used to unlawfully enrich the defendant, other coconspirators, and their friends and family members.”[3] The Plea Agreement provides a few examples of this conduct, such as drafting documents containing “line items that were never intended to be provided or were intentionally inflated”; “including line items for fictional part numbers that were never intended to be provided”; and “excluding discounts that the defendant and coconspirators knew would be applied, which they referred to as ‘material savings.’”[4]

In addition to including unnecessary materials, labor, and costs into contract documents, the press release also notes that James “directed coconspirators – 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,” which led to the government overpaying for IT contracts.[5] The Plea Agreement again offers an example: James and coconspirators gave an executive of one of the companies bidding on the project the Independent Government Cost Estimate, which gave that company “an advantage by allowing it to bid up to, without exceeding, the government’s estimate.”[6]

To “facilitate the transfer of excess siphoned from government contracts,” the coconspirators used shell companies, such as one company James established named “T.R.A.P. LLC.”[7]

What Are Government Enforcers Saying About This Guilty Plea?

Several government enforcers commented on James’s guilty plea, underscoring both the government’s focus on this type of conduct and the importance of deterring such violations. Their statements provide a firm warning to those who engage in bid rigging schemes, particularly where the government is deprived of a competitive bidding process and is overcharged, and they reaffirm the government’s commitment to prosecuting antitrust and fraud schemes.

Acting Deputy Assistant Attorney General Daniel Glad of the DOJ’s Antitrust Division stated, “Over thirty-seven million dollars – that’s how much the U.S. Air Force overpaid because of the scheme that the defendant admitted to . . . . 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.”[8]
U.S. Attorney Ken Sorenson of the District of Hawaii, where the case was prosecuted, stated, “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. 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.”[9]
Special Agent in Charge John E. Helsing of Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) stated, “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. DCIS, along with our law enforcement partners and the [DOJ], will aggressively investigate those who seek to enrich themselves through fraudulent schemes targeting the U.S. Department of Defense and American Taxpayers.”[10]
Special Agent Nicole Vanourek of Air Force Office of Special Investigations, Procurement Fraud stated, “This case highlights the capabilities and strength of joint investigative efforts to defend and protect sensitive Department of War (DoW) acquisition systems. Ensuring companies adhere to robust contracting requirements is integral to maximizing the Air Force’s lethality and readiness to address evolving security challenges.”[11]
Special Agent in Charge Christopher Bjornstad of the U.S. General Services Administration, Office of Inspector General stated, “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. GSA OIG special agents and our law enforcement partners remain committed to pursuing those who engage in procurement fraud.”[12]

DOJ Promotes New Antitrust Whistleblower Rewards Program

In addition to those strong statements from government enforcers, the DOJ took this opportunity to promote its new Antitrust Whistleblower Rewards Program.[13] Under that program, eligible whistleblowers who voluntarily report original information about a criminal antitrust violation resulting in criminal fines or other recoveries of at least $1 million may be eligible for a reward of up to 30% of the money collected.

Constantine Cannon Has Substantial Antitrust and Whistleblower Experience

Constantine Cannon has substantial experience representing both antitrust and whistleblower clients. On the antitrust side, the firm is responsible for two of the largest antitrust settlements in history, recovering more than $5 billion for our clients. On the whistleblower side, the firm has secured numerous landmark settlements, with more than $1 billion recovered for the Government and our whistleblower clients.

Many of our whistleblower matters have involved underlying antitrust violations. Among our antitrust whistleblower successes is the roughly $363 million in settlements we helped secure for the Government and our client in a False Claims Act case against several Korean oil companies alleging a bid-rigging scheme to artificially inflate the price the U.S. military paid for fuel contracts for its bases in South Korea. It remains the largest False Claims Act antitrust recovery ever.

Constantine Cannon partner, Daniel Vitelli, commented, “The DOJ’s announcement of this guilty plea is yet another example of the government bringing an enforcement action where the conduct at issue implicates both antitrust law and fraud laws. That continues to be a crucial area for the government, as active enforcement of antitrust law and of fraud laws like the False Claims Act benefits consumers and helps protect government funds.”

If you would like to learn more about our successes in this area, the DOJ’s Antitrust Whistleblower Rewards Program, or what it means to be a whistleblower more broadly, please do not hesitate to contact us. We will connect you with an experienced member of the Constantine Cannon whistleblower team for a free and confidential consultation.