Defense giant Raytheon has agreed to pay the U.S government over $950 million for defrauding the Pentagon and allegedly bribing a Qatari official, the Justice Department announced today. RTX admitted to “two separate schemes” in connection with the Patriot missile systems and a radar system, causing the DOD to pay Raytheon over $111 million more than they should have been paid. RTX will pay over $124 million for bribing a high-level Qatari military official and then falsifying documents to conceal those payments. The Justice Department’s Criminal Division stressed the significance of tackling such corruption, which erodes public trust and harms American taxpayers.
In a statement, Raytheon acknowledged that the misconduct occurred largely before 2020, with the financial impact consistent with previous disclosures. The company is taking responsibility for the misconduct and is committed to improving its ethics and compliance program. Raytheon was also fined $200 million for unauthorized exports of defense technology to China, Russia, Iran, and other countries. They had set aside over $1 billion to settle various government investigations, as disclosed during an earnings call.
