Defense giant Raytheon will pay the U.S government more than $950 million for defrauding the Pentagon and allegedly bribing a Qatari official, the Justice Department announced today.
RTX admitted to “two separate schemes” to defraud the Defense Department in connection with the Patriot missile systems and a radar system, and other defense services, according to a DOJ release.
“These schemes to defraud caused the DOD to pay Raytheon over $111 million more than Raytheon should have been paid on the contracts,” the release said.
RTX will pay the government more than $124 million for bribing a high-level Qatari military official to win defense contracts, and then concealed those payments by falsifying documents, according to an SEC filing.
“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 Deputy Assistant Attorney General Kevin Driscoll of the Justice Department’s Criminal Division. “Such corrupt and fraudulent conduct, especially by a publicly traded U.S. defense contractor, erodes public trust and harms the DOD, businesses that play by the rules, and American taxpayers. Today’s resolutions, with criminal and civil recoveries totaling nearly $1 billion, reflect the Criminal Division’s ability to tackle the most significant and complex white-collar cases across multiple subject matters.”
In a statement, RTX said the misconduct occurred “largely prior to 2020” and the financial impact of these matters is consistent with the reserve announced in the company’s July 2024 quarterly earnings report.
“RTX is taking responsibility for the misconduct that occurred. We have worked diligently during the investigations to remediate that misconduct and continue to do so. We are committed to working closely with the incoming independent monitor to improve and further enhance our ethics and compliance program,” the company said.
The defense contractor also recently was fined $200 million for the unauthorized export of defense technology to China, Russia, Iran, and elsewhere. In July, the company told investors during an earnings call that it set aside more than $1 billion to settle a number of government investigations.
“While this is one of the biggest penalties in recent memory, it is not an isolated incident with defense contractors. For example, earlier this year Lockheed settled a suit for $70 million to resolve overcharging the Navy for parts. Meanwhile, Boeing on the commercial aerospace end of the spectrum paid some $487 million related to 737 MAX certification,” said Rich Pettibone of Forecast International, a sister brand of Defense One. “With RTX taking responsibility for the misconduct and paying the penalty, I don’t anticipate any curtailment of their work with the Pentagon.”
Bradley Peniston contributed to this article.
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