Raytheon, part of the American RTX aerospace and defense group, has reached multiple settlements with US authorities, agreeing to pay over $950 million to resolve allegations of fraud, corruption, and violations of arms control laws.
Kevin Driscoll, a US Department of Justice official, announced on Wednesday that Raytheon engaged in fraudulent activities to deceive the US government in contracts related to sensitive military systems and secured contracts through bribery in Qatar.
The company, facing both civil and criminal charges in several U.S. states in coordination with the Securities and Exchange Commission (SEC), has particularly entered into two three-year Deferred Prosecution Agreements (DPA).
Additionally, Raytheon has settled a separate case under the False Claims Act concerning flawed pricing schemes for some government contracts, coordinated with SEC actions related to the Foreign Corrupt Practices Act and the International Traffic in Arms Regulations.
The settlements include the appointment of an independent monitor, enhancements to the company’s internal compliance programs, mandatory reporting of any fraudulent activities, and cooperation in ongoing or future investigations, the Department of Justice reported.
Officials from the department and the Federal Bureau of Investigation (FBI) have stated that Raytheon deliberately committed fraud against the US government to secure lucrative military contracts, thereby endangering the national security of the United States and its allies.
The charges involve supplying weapons and services, including Patriot missile systems and radar systems, and also relate to “phantom contracts” with a provider in Qatar intended to pay bribes for securing defense contracts.
The American authorities have also accused Raytheon of inflating prices and falsifying documents which led to more than $111 million in extra costs charged to the Pentagon.
The company also admitted to costing the Pentagon twice the value of the contracts themselves. These activities took place between 2009 and 2020, particularly during the period from 2012 to 2016.
