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HomeEXTRABUSINESSRaytheon Company Fined $950m in Connection With Foreign Bribery of Qatari Official,...

Raytheon Company Fined $950m in Connection With Foreign Bribery of Qatari Official, Export Control, Defective Pricing Schemes

Raytheon Company, a subsidiary of Arlington, Virginia-based defence contractor RTX (formerly known as Raytheon Technologies Corporation), entered into a three-year deferred prosecution agreement with the Department of Justice in connection with a criminal information unsealed in the Eastern District of New York charging Raytheon with two counts: conspiracy to violate the anti-bribery provision of the Foreign Corrupt Practices Act for engaging in a scheme to bribe a government official in Qatar and conspiracy to violate the Arms Export Control Act by willfully failing to disclose the bribes in export licensing applications with the Department of State.

The criminal information was unsealed following an investigation by Homeland Security Investigations (HSI) New York in coordination with the Department of Justice and the FBI.

Separately, 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.

Walker also expressed his appreciation to the Securities and Exchange Commission, the FBI’s Washington field office and the U.S. Department of State.

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 DOJ relating to the defective pricing schemes. The Justice Department’s FCPA and ITAR resolution is coordinated with the Securities and Exchange Commission.

In addition, the Justice Department’s resolutions ensure that the appropriate federal agencies can proceed with determining whether Raytheon or any other individuals or entities associated with the company should be suspended or debarred as federal contractors. Pursuant to the Federal Acquisition Regulations, when more than one agency has an interest in an entity’s potential suspension or debarment, the FAR requires that the Interagency Suspension and Debarment Committee identify the lead agency for conducting governmentwide suspension or debarment proceedings. In connection with this resolution, the Justice Department has referred Raytheon’s factual admissions to the appropriate officials within the Department of Defense to initiate the process with the ISDC to identify which federal agency will take the lead in such administrative proceedings, which occur independently of the Justice Department’s criminal and civil resolutions.

“Raytheon engaged in criminal schemes to defraud the U.S. government in connection with contracts for critical military systems and to win business through bribery in Qatar,” said Driscoll. “Such corrupt and fraudulent conduct, especially by a publicly traded U.S. defense contractor, erodes public trust and harms the Department of Defense, businesses that play by the rules, and American taxpayers. Today’s resolutions, with criminal and civil penalties totaling nearly $1 billion, reflect the Criminal Division’s ability to tackle the most significant and complex white-collar cases across multiple subject matters.”

“International corruption in military and defense sales is a violation of our national security laws as well as an anti-bribery offense,” said Olsen. “Raytheon willfully failed to disclose bribes made in connection with contracts that required export licenses. Today’s resolution should serve as a stark warning to companies that violate the law when selling sensitive military technology overseas.”

“Over the course of several years, Raytheon employees bribed a high-level Qatari military official to obtain lucrative defense contracts and concealed the bribe payments by falsifying documents to the government, in violation of laws including those designed to protect our national security,” said Peace. “We will continue to pursue justice against corruption, and as this agreement establishes, enforce meaningful consequences, reforms and monitorship to ensure this misconduct is not repeated.”

“The Raytheon Company set out to intentionally defraud the U.S. government,” said Yarbrough. “This agreement highlights the importance of integrity when it comes to government contracting. The FBI, with its law enforcement partners, will continue to investigate these types of crimes that waste taxpayer dollars and prosecute all those who are intent on cooking up these major fraud schemes.”

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