RTX subsidiary Raytheon to Pay Over $950M in Government Fraud Settlement.
Defense contractor Raytheon will pay more than $950 million to settle Justice Department investigations into defective pricing fraud and breaches of the Foreign Corrupt Practices Act. Raytheon's been charged for allegedly engaging in a scheme to bribe a a high-level military official in Qatar.
Raytheon has agreed to a three-year deferred prosecution agreement (DPA) following the filing of a criminal information in the District of Massachusetts, which charges the company with two counts of significant fraud against the United States. In conjunction with this resolution, Raytheon has acknowledged its involvement in two distinct schemes aimed at defrauding the Department of Defense (DOD) related to the supply of defense articles and services, including PATRIOT missile systems and a radar system.
The company admitted to submitting misleading and fraudulent information between 2012-2013 and 2017-2018 during contract negotiations. The fraudulent schemes resulted in the Department of Defense disbursing over $111 million more to Raytheon than what was warranted under the contracts.
Deputy Assistant Attorney General Kevin Driscoll, representing the Criminal Division of the Justice Department, stated: "Raytheon engaged in criminal schemes to defraud the U.S. government in connection with contracts for critical military systems and to win business through bribery in Qatar. Such corrupt and fraudulent conduct, especially by a publicly traded U.S. defense contractor, erodes public trust and harms the DOD, businesses that play by the rules, and American taxpayers. Today’s resolutions, with criminal and civil recoveries totaling nearly $1 billion, reflect the Criminal Division’s ability to tackle the most significant and complex white-collar cases across multiple subject matters."
Raytheon has agreed to pay over $124 million to resolve allegations brought by the U.S. Securities and Exchange Commission regarding violations of the Foreign Corrupt Practices Act. These violations pertain to the payment of over $32 million in bribes to a relative of the emir of Qatar, as well as to military and government officials in the country, in return for securing defense contracts. Over $22 million of that settlement will be counterbalanced by Raytheon's agreement with the Department of Justice.
RTX in a statement said: "The company is taking responsibility for the misconduct that occurred, we have worked diligently during the investigations to remediate that misconduct and continue to do so. We are committed to working closely with the incoming independent monitor to improve and further enhance our ethics and compliance program."
RTX is an American multinational aerospace and defense contractor, headquartered in Arlington, Virginia. It is formerly known as Raytheon Technologies Corporation. RTX manufactures a wide range of advanced technologies, including aircraft engines, avionics, aerostructures, cybersecurity solutions, guided missiles, air defense systems, satellites, and drones.
