The Raytheon Technologies, recently renamed RTX Corporation, headquarters building is seen at dusk on January 20, 2024 in Arlington, VA.
J. David Ake | Good pictures
A Raytheon subsidiary of the defense contractor RTX It agreed Wednesday to pay more than $950 million to settle Justice Department investigations into a government contract fraud scheme, violations of foreign bribery laws and violations of the Arms Export Control Act.
Raytheon agreed to pay more than $124 million to settle the charges filed Securities and Exchange Commission Qatar violated the Foreign Corrupt Practices Act by paying more than $32 million in bribes to a relative of Qatar’s emir and to military and government officials in exchange for security contracts there. Raytheon’s settlement with the DOJ will cover more than $22 million.
As part of the DOJ settlement, the company agreed to enter into deferred prosecution agreements involving that conduct in federal district courts in Brooklyn, New York and Massachusetts.
The Brooklyn lawsuit accused the company of conspiring to violate anti-bribery laws in a scheme to bribe a high-ranking government official in Qatar and failing to disclose the bribes on export license applications to the State Department as legally required.
In the Massachusetts case, Raytheon admitted to two separate schemes to defraud the Department of Defense regarding Patriot missile systems and a radar system. along with other security products and services.
The company will retain an independent monitor for three years and improve its internal compliance program as part of the settlement announced by the DOJ.
“Raytheon engaged in criminal schemes to defraud the U.S. government regarding contracts for critical military organizations and to win business in Qatar through bribery,” Kevin Driscoll, deputy assistant attorney general for DOJ’s criminal division, said in a statement.
“Such corrupt and fraudulent behavior, particularly by a publicly traded U.S. defense contractor, erodes public trust and harms DOD, businesses that play by the rules, and the American taxpayer,” Driscoll said.
RTX said in a statement that the settlements with the DOJ and the Securities and Exchange Commission are related to previously disclosed investigations by the company, and that “these legacy legal matters are largely related to conduct at Raytheon prior to 2020.”
“RTX takes responsibility for the misconduct,” the company said. “We have worked diligently to correct that misconduct during investigations and continue to do so. We are committed to working closely with the incoming independent monitor to improve and further develop our ethics and compliance program.”
“Friend of animals everywhere. Devoted analyst. Total alcohol scholar. Infuriatingly humble food trailblazer.”