Weapons manufacturer Raytheon fined nearly $1B for bribery and fraud

U.S. defense contractor Raytheon, a subsidiary of RTX, has been fined over $950 million for inflating federal contracts and bribing foreign military officials, according to an announcement from the U.S. Department of Justice on Wednesday.

The company has agreed to pay the penalty and enter a three-year deferred prosecution agreement (DPA) without disputing the charges.

The charges include two counts of major fraud against the U.S., with Raytheon admitting to defrauding the Department of Defense (DOD) in connection with the sale and maintenance of Patriot missile systems and a radar system. The fraudulent activity occurred between 2012-2013 and 2017-2018, during which Raytheon provided false information that led to the DOD overpaying by $111 million.

Additionally, the company admitted to submitting false cost and pricing data on numerous contracts between 2009 and 2020, further defrauding the government.

In a separate case, Raytheon agreed to another three-year DPA on charges of conspiracy to bribe a high-ranking Qatari military official and violating the Arms Export Control Act (AECA) by hiding bribes in export licensing applications to the U.S. State Department.

Raytheon has also reached a settlement with the Justice Department under the False Claims Act related to its pricing schemes.

“Raytheon’s criminal conduct erodes public trust and harms the Department of Defense, law-abiding businesses, and American taxpayers,” said Deputy Assistant Attorney General Kevin Driscoll of the Justice Department’s Criminal Division.

Under the DPA agreements, Raytheon will implement an enhanced compliance program, cooperate with ongoing investigations, and retain an independent compliance monitor for the next three years.