Raytheon Company to pay over $950 million to resolve federal charges after government investigations

The U.S. Attorney’s Office in Massachusetts announced Wednesday that Raytheon, a subsidiary of RTX, has agreed to pay over $950 million in criminal and civil charges to resolve federal charges following government investigations of fraud schemes of defect pricing on government contracts, foreign bribery, and export control schemes.

In Massachusetts, Raytheon is set to pay and resolve over $574 million in criminal civil liability charges for overcharging government contracts. Raytheon has announced that they have entered a three-year deferred prosecution agreement after the District of Massachusetts charged Raytheon in criminal information today with two counts of major fraud against the U.S.

As part of the $574 million resolution, Raytheon has agreed to pay $147 million to resolve those criminal allegations.

Alongside the criminal allegations, Raytheon has also agreed to pay $428 million, the second largest government procurement fraud recovery under the False Claims Act, to settle civil allegations. According to the Department of Defense, Raytheon gave untruthful certified cost or pricing data when the two negotiated prices of government contracts. The DOD alleged that Raytheon double-billed them on weapons maintenance contracts. Raytheon will pay $146.7 million in a criminal monetary penalty and $111.2 million in victim compensation.

It was also announced earlier today that Raytheon has also entered into a three-year DPA in connection with criminal information unsealed today in the Eastern District of New York. They have charged Raytheon with two counts of bribery, including bribing a Qatar gov. official and failing to disclose this bribe.

“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 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.”

This is a developing story. Check back for updates as more information becomes available.

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