Raytheon to pay over $950M to resolve Justice Department investigations

Raytheon, a subsidiary of Arlington, Virginia-based defense contractor RTX, formerly known as Raytheon Technologies Corporation, will pay over $950M to resolve the Justice Department’s investigations into a major government fraud scheme involving defective pricing on certain government contracts and violations of the Foreign Corrupt Practices Act, or FCPA, and the Arms Export Control Act, or AECA, and its implementing regulations, the International Traffic in Arms Regulations, or ITAR, the DOJ announced. “Raytheon will enter into a three-year deferred prosecution agreement in connection with a criminal information filed today in the District of Massachusetts charging Raytheon with two counts of major fraud against the United States. As part of that resolution, Raytheon admitted to engaging in two separate schemes to defraud the Department of Defense in connection with the provision of defense articles and services, including PATRIOT missile systems and a radar system. Separately, Raytheon entered into a three-year DPA in connection with a criminal information unsealed today in the Eastern District of New York charging Raytheon with two counts: conspiracy to violate the anti-bribery provision of the FCPA for a scheme to bribe a government official in Qatar and conspiracy to violate the AECA for willfully failing to disclose the bribes in export licensing applications with the Department of State as required by part 130 of ITAR. Both agreements require that Raytheon retain an independent compliance monitor for three years, enhance its internal compliance program, report evidence of additional misconduct to the Justice Department, and cooperate in any ongoing or future criminal investigations. Raytheon also reached a separate False Claims Act settlement with the department relating to the defective pricing schemes. The Justice Department’s FCPA and ITAR resolution is coordinated with the Securities and Exchange Commission,” the DOJ said.