QUANTICO, Va. -- In just the last two years, the Air Force Office of Special Investigations (AFOSI) has recovered more than $1.83 billion through fraud-related settlements, penalties and restitution, a milestone underscoring the Department of the Air Force’s crackdown on financial misconduct.
That recovery total is roughly the cost of more than 20 F-35 fighter jets, highlighting the real-world impact of AFOSI’s efforts to safeguard taxpayer dollars and protect mission readiness.
“Every tax dollar committed to the warfighter must be spent as intended,” said Brig. Gen. Amy Bumgarner, AFOSI commander. “Those who divert these funds for personal enrichment will be found, prosecuted to the fullest extent of the law and held accountable for their actions.”
From billion-dollar defense contracting schemes to falsified housing data and pandemic relief abuse, AFOSI’s Procurement Fraud (PF) teams have uncovered fraud at every level, making clear that no scheme is too complex, and no offender too small, to face justice.
“Fraud doesn’t just steal money, it weakens our force and damages trust,” said Jason Hein, director of AFOSI PF. “Our teams are uncovering these schemes in real time and we’re holding the people behind them fully accountable.”
This historic recovery total reflects more than just numbers, he added, it speaks to the core of AFOSI’s mission and its relentless pursuit of justice.
As the Department of the Air Force’s primary investigative agency, AFOSI takes on a central role in detecting and dismantling financial crimes that threaten mission effectiveness and public trust.
In Fiscal Year 2024 alone, AFOSI-led investigations have recovered more than $623 million. The year’s most significant case, a $574.8 million joint recovery, stemmed from an investigation into fraudulent overpricing and violations tied to national security.
The scheme involved multiple layers of financial manipulation and compliance failures, ultimately resulting in one of the largest recoveries in the history of AFOSI’s fraud mission.
“AFOSI is a critical component of a multi-layered defense against fraud,” said Lt. Col. Stewart Hawkins, AFOSI PF deputy director. “Our investigations are not just about holding companies accountable; they are about ensuring the integrity of the entire acquisition process and protecting the warfighter. Those who believe they can exploit vulnerabilities will find that AFOSI is always watching."
Other active investigations in 2024 targeted a broad spectrum of misconduct, including inflated cost structures, false certifications and sourcing violations, each carrying legal and professional consequences.
Success in 2024 followed historic results in Fiscal Year 2023, when AFOSI PF shattered previous records by delivering the largest single-year recovery in the agency’s history. In 2023, more than $1.19 billion, setting a new standard for accountability across the defense contracting landscape.
The fallout included not only multimillion-dollar settlements and company debarments but also the permanent loss of security clearances for individuals tied to the fraud.
Among the year’s most notable outcomes was a $377.45 million recovery tied to improper billing practices. Another case, an $18 million settlement involving the sale of non-conforming electrical connectors. In total, AFOSI’s fraud investigations in 2023 triggered 26 suspensions and debarments.
But more importantly, Hawkins said, these cases reinforced a message that has become central to AFOSI’s mission, which is fraudulent behavior carries serious risk and will not go unchecked.
With two consecutive years of large fraud recoveries behind it, AFOSI’s fight against financial misconduct continues to gain momentum.
Midway through 2025, AFOSI-led investigations have recovered more than $89.3 million, secured four fraud convictions and issued five suspensions or debarments. In addition, the average prison sentence for offenders so far is 22 months, reinforcing AFOSI’s commitment to swift accountability.
Ongoing 2025 investigations have exposed a wide range of violations, too, from cybersecurity failures and inflated contract pricing to sourcing deception. While headline-making settlements often involve millions of dollars and major defense contractors, AFOSI’s fraud mission extends all the way to the unit level.
These smaller-scale offenses trigger the same rigorous investigative process and carry the same potential for criminal prosecution, financial restitution and career-ending consequences.
For example, an Airman at Eglin Air Force Base, Florida, who attempted to fraudulently obtain a $20,833 Paycheck Protection Program (PPP) loan. The individual was ultimately required to repay $63,327.54 and demonstrated that even relatively minor fraud attempts are met with swift accountability, Hawkins said.
“Fraudulent schemes spread quickly, but AFOSI is faster,” said Special Agent Tony Ortiz, a consultant at the AFOSI Center for Investigations and Operations. “Those who participate, even if they believe their involvement is minor, will be identified and prosecuted.”
Other PPP and CARES Act investigations revealed far-reaching fraud rings.
One case involved a non-DoD civilian who fraudulently secured $870,000 in pandemic relief funds, while another uncovered a Department of the Air Force employee who exploited stolen identities to file over 1,000 fraudulent CARES Act applications, netting $7.9 million.
“Fraud is an umbrella term,” said Special Agent Jacob Tudor, associate director of the AFOSI Center’s Fraud and Corruption Branch. “Whether it’s exploiting housing programs or pandemic relief, the goal is always the same, getting something you weren’t entitled to in the first place.”
Today’s fraud schemes increasingly involve emerging technologies, including cryptocurrency, shell companies, and Non-Fungible Tokens (NFTs) and AFOSI is evolving to meet them head-on.
Embedded forensic auditors now play a critical role in AFOSI investigations. Their expertise allows teams to analyze large financial datasets, trace hidden transactions and identify fraud patterns that might otherwise go undetected.
“AFOSI's mission is to relentlessly pursue and prosecute those who commit fraud against the Air Force and Space Force,” Bumgarner said. “Those who contemplate fraud should know that AFOSI is always watching, and the consequences will be severe.”
Editor’s note: This article is part of “Price of Fraud,” a series examining the consequences of fraud within the Department of the Air Force. Each case reveals how fraud undermines readiness, wastes resources and results in lasting legal, financial and professional consequences.
If you see something, say something. Insider threats, fraud, and other criminal activity directly impact readiness, safety, and mission success. Help protect our service—report tips anonymously at: //www.p3tips.com/TipForm.aspx?ID=1111.
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