At dusk on January 20, 2024, the Raytheon Technologies (recently renamed RTX Corporation) headquarters building is located in Arlington, Virginia.
J. David Acker | Getty Images
A subsidiary of defense contractor Raytheon Co. RTX agreed Wednesday to pay more than $950 million to settle a Justice Department investigation into an alleged government contracts fraud scheme and violations of the Foreign Bribery Act and the Arms Export Control Act.
Raytheon has also agreed to enter into deferred prosecution agreements in federal district courts in Brooklyn, New York and Massachusetts in cases involving this conduct.
The company is accused in the Brooklyn case of conspiring to violate anti-bribery laws by scheming to bribe a senior government official in Qatar to secure lucrative business there and failing to disclose the bribe when applying for an export license from the State Department, as required by law. Require.
In the Massachusetts case, Raytheon admitted engaging in two separate schemes related to the Patriot missile system and radar system to deceive the Department of Defense. and other defense products and services.
As part of the settlement announced by the Justice Department, the company will also retain an independent monitor for three years and strengthen its internal compliance program.
“Raytheon engaged in a criminal scheme to defraud the U.S. government on contracts for critical military systems and used bribes to win contracts in Qatar,” Deputy Assistant Attorney General Kevin Driscoll of the Justice Department’s Criminal Division said in a statement. business.”
“This type of corruption and fraud, especially by publicly traded U.S. defense contractors, erodes public trust and harms the Department of Defense, businesses that play by the rules and American taxpayers,” Driscoll said.
RTX said in a statement that the settlement with the U.S. Department of Justice and the Securities and Exchange Commission is related to investigations the company previously disclosed and that “these legacy legal issues primarily relate to conduct by Raytheon that occurred prior to 2020.”
“RTX accepts responsibility for the misconduct that occurred,” the company said. “We have worked hard to correct this misconduct during the investigation and will continue to do so. We are committed to working closely with the incoming independent ombudsman to improve and further strengthen our ethics and compliance program.”
