Former Air Force Contractor Pleads Guilty in Capone Like Bid Rigging of $37 Million IT Contracts

Alan Hayward James, 51, admitted to conspiracy to rig bids, conspiracy to commit wire fraud, and bribery in a nine year plot, calling himself “Al Capone” along the way.

The plot stretched back to at least April 2016, as James worked with co conspirators to inflate the price of IT contracts to siphon the gains to himself and others.

Between 2014 and 2018, James was an active duty airman serving as a Contracting Officer’s Representative for Pacific Air Forces, representing the Air Force on contracts tied to IT services.

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James retired at the end of January 2018, but continued to work with a co conspirator to draft contract documents for Pacific Air Force, even though he himself was not contracted to help the other person.

After leaving the Air Force, James also told his co conspirators how to bid on contracts to get around the required competitive bidding process.

The scheme relied heavily on shell companies to move the money around, including one called T.R.A.P. LLC that James set up while still in the Air Force.

The scheme was lucrative, bringing in tens of millions of dollars. Per the court documents, James kept track of the siphoned excess money in a series of ledgers, which the government obtained.

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In the ledgers, James called himself “Al Capone” in reference to the infamous gangster and referred to another conspirator as “Godfather.”

They also used public funds to book a trip to a resort in Hawaii in 2023, which included golfing, massages and other luxury perks.

“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,” U.S. Attorney Ken Sorenson for the District of Hawaii said in a Department of Justice release.

James is set to be sentenced in the fall. The charges come with a combined penalty of up to 45 years in prison. As part of his guilty plea, James agreed to pay more than $1.4 million back to the Department of Defense.

This case underscores a fundamental truth that drives national security: every penny spent must be earned through honest competition and prudent stewardship.

Under President Trump’s leadership and with Secretary of War Pete Hegseth guiding reforms, the defense enterprise must root out waste and safeguard the resources that keep the country secure.

When leaders insist on accountability, taxpayers see the system respond with speed and resolve.

The focus now is on closing loopholes and ensuring that contracts serve the men and women who defend the nation, not the pockets of a few corrupt actors.

The message is clear: there is zero tolerance for abuse of the system that funds readiness, training, and life saving technology.

The nation expects a stronger, cleaner contracting process, and that is exactly what the administration intends to deliver.

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