Raytheon Co., a subsidiary of parent defense contractor RTX, will now reportedly pay over $950 million to resolve Justice Department allegations that it defrauded the Defense Department (DOD) and paid bribes to a government official in Qatar in order to secure business in the country.
The Department of Justice also stated that the company had violated “its implementing regulations” and “the International Traffic in Arms Regulations.”
In separate proceedings filed Wednesday in federal court in Massachusetts and New York, Raytheon will enter into three-year deferred prosecution agreements.
Additionally, the organization consented to engage independent compliance monitors to guarantee that it adheres to anti-corruption and anti-fraud legislation.
The allegations in the Massachusetts case are centered on the operation of a radar surveillance system in 2017 and the missile systems that Raytheon sold to the Department of Defense from 2011 to 2013.
The corporation was accused of inflating its costs by $111 million in those transactions.
The Pentagon was purportedly deceived by Raytheon regarding the expenses associated with the construction of three Patriot missile batteries. Consequently, the Army executed a $619 million contract.
The government was overcharged by approximately $100 million as a result of Raytheon informing the Pentagon in 2013 that its anticipated costs had increased when they had actually decreased.
This information was discovered by DOJ investigators who uncovered an email.
In 2017, prosecutors alleged that Raytheon deceived the Air Force regarding the expenses associated with the operation and maintenance of a radar surveillance system in order to exaggerate the contract by $11 million.
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