Uh Scam? No. Deceitful yes, but not a scam. If he opened up a bunch of big security holes by allowing these consulting firms access I could see why he'd be in trouble, but otherwise I'd expect the worst that could happen to him would be losing his 'job'. Verizon was receiving everything they paid for, and high quality work, by the sound of it.
Personally, I'd never outsource my job to China. I'd pick India for sure.