Manufacturer of Patriot Missiles Penalized Nearly $1 Billion
Raytheon, the producer of Patriot missile systems, faces allegations of foreign bribery and inflating federal contracts. Read Full Article at RT.com.
TroibNews 
The US government has mandated that defense contractor Raytheon pay over $950 million in penalties for inflating federal contracts and bribing senior foreign military officials, as announced on Wednesday.
As per a press release from the US Justice Department, Raytheon, a subsidiary of RTX, has not contested the allegations. The company has consented to pay the fine and enter into a three-year deferred prosecution agreement concerning the charges, which include two counts of “major fraud against the United States.”
“Raytheon admitted to engaging in two separate schemes to defraud the Department of Defense in connection with the provision of defense articles and services, including PATRIOT missile systems and a radar system,” the statement from the Justice Department noted.
Prosecutors allege that between 2012 and 2013, and again from 2017 to 2018, Raytheon employees submitted “false and fraudulent information” to the Defense Department during contract negotiations for the sale of Patriot missile systems and for the operation and maintenance of a radar system. In both instances, the Defense Department was misled and ended up paying Raytheon $111 million more than it should have.
Additionally, Raytheon has acknowledged that it provided false information to the Defense Department from 2009 to 2020 regarding costs and pricing on various government contracts.
The manufacturer has also entered into a separate three-year DPA related to two more charges, including conspiracy to bribe a senior Qatari military official and conspiracy to violate the Arms Export Control Act in order to hide bribes in export licensing applications submitted to the State Department.
Raytheon has reportedly reached a separate settlement under the False Claims Act with the Justice Department concerning defective pricing schemes.
“Raytheon engaged in criminal schemes to defraud the US government in connection with contracts for critical military systems and to win business through bribery in Qatar,” stated 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,” Driscoll added.
As part of the two DPA agreements, Raytheon will need to appoint an independent compliance monitor for three years, enhance its internal compliance program, report evidence of additional misconduct, and cooperate with any ongoing or future criminal investigations, as explained by the Justice Department.
Allen M Lee for TROIB News
As per a press release from the US Justice Department, Raytheon, a subsidiary of RTX, has not contested the allegations. The company has consented to pay the fine and enter into a three-year deferred prosecution agreement concerning the charges, which include two counts of “major fraud against the United States.”
“Raytheon admitted to engaging in two separate schemes to defraud the Department of Defense in connection with the provision of defense articles and services, including PATRIOT missile systems and a radar system,” the statement from the Justice Department noted.
Prosecutors allege that between 2012 and 2013, and again from 2017 to 2018, Raytheon employees submitted “false and fraudulent information” to the Defense Department during contract negotiations for the sale of Patriot missile systems and for the operation and maintenance of a radar system. In both instances, the Defense Department was misled and ended up paying Raytheon $111 million more than it should have.
Additionally, Raytheon has acknowledged that it provided false information to the Defense Department from 2009 to 2020 regarding costs and pricing on various government contracts.
The manufacturer has also entered into a separate three-year DPA related to two more charges, including conspiracy to bribe a senior Qatari military official and conspiracy to violate the Arms Export Control Act in order to hide bribes in export licensing applications submitted to the State Department.
Raytheon has reportedly reached a separate settlement under the False Claims Act with the Justice Department concerning defective pricing schemes.
“Raytheon engaged in criminal schemes to defraud the US government in connection with contracts for critical military systems and to win business through bribery in Qatar,” stated 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,” Driscoll added.
As part of the two DPA agreements, Raytheon will need to appoint an independent compliance monitor for three years, enhance its internal compliance program, report evidence of additional misconduct, and cooperate with any ongoing or future criminal investigations, as explained by the Justice Department.
Allen M Lee for TROIB News
