Texas man pleads guilty to $37 million US Air Force fraud, channelled bribes to ‘Godfather’ and ‘Al Capon—
A former US Air Force Master Sergeant has been found guilty of wiring millions of dollars worth of IT contracts from the military to himself, his family and friends. Alan Hayward James reportedly pleaded guilty to the conspiracy to commit wire fraud, bribery and conspiracy to rig the bids in the District of Hawaii. As per the Department of Justice statement issued on Thursday, the 51-year-old was responsible for drafting contracts for US Air Force installations across the Pacific. The DOJ revealed that the Texas native admitted he inflated the cost of materials and labour and then pocketed the difference. James and his co-conspirators would then wire funds to shell companies, pay false salaries and perks to people codenamed “The Godfather” and “Godmother.” He tracked the excess money in the ledgers, while referring to himself as “Al Capone” and his parents as “Capone M” and “Capone D.” He even paid for his co-conspirators to enjoy an all-expenses-paid trip for two nights at a luxury resort on the North Shore of Oahu, as per CBS News. Annual payments to his accounts varied from $10,000 to $200,000. In an instance, he advised a company to submit a bid for an IT contract that was “low and stupid”, effectively leading them to win the contract at an inflated rate.
All in all, he defrauded the Air Force out of a whopping $37 million over a period of nine years, from 2016 to 2025. “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,” said US Attorney Ken Sorenson for the District of Hawaii, in a statement. “Bid-rigging and anti-competitive behaviour in government contracts erodes trust in our institutions, harms taxpayers, and will not be tolerated.”Sorenson warned that any and all individuals who seek to “manipulate markets and undermine fair competition for their personal gain,” will be investigated and prosecuted.The recipients did not include work required by the contracts, despite receiving “salaries” from the co-conspiring companies. Now, James faces 20 years in prison along with a $250,000 fine. Moreover, he agreed to pay restitution of at least $1,451,656.80 to the American government, as per CBS News.
