- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2024-10-17T17:01:00
The other shoe has finally dropped for Raytheon and parent company RTX Corp., as two U.S. regulators announced $950 million in penalties to settle transgressions related to using false information to set prices in defense contracts, a False Claims Act violation related to inflated prices on numerous government contracts, and bribes paid to government officials in Qatar that violated the Foreign Corrupt Practices Act.
The company pled guilty in U.S. District Court for the District of Massachusetts to two counts of major fraud related to two separate schemes to defraud the Department of Defense by providing false and fraudulent information related to the costs to build a Patriot missile system and a radar system for foreign partners of the U.S., the Department of Justice said in a press release Wednesday. Raytheon will pay a criminal penalty of $146.7 million and $111.2 million in victim compensation related to the case. The criminal fine was reduced by 25 percent thanks to the company’s cooperation and timely remedial measures, the DOJ acknowledged.
Raytheon also pled guilty Wednesday in U.S. District Court for the Eastern District of New York to two counts related to the scheme to bribe a government official in Qatar.
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