The company admitted to engaging in two schemes that defrauded the Department of Defense (DOD) related to the supply of defense materials, including its renowned PATRIOT missile systems and radar technology.
Raytheon Company, a key subsidiary of defense giant RTX based in Arlington, Virginia, has agreed to pay over $950 million to settle investigations by the U.S. Department of Justice (DOJ). These investigations focused on serious allegations of government fraud and violations of international anti-corruption laws.
The settlement includes a three-year deferred prosecution agreement (DPA) following charges filed in the District of Massachusetts, where Raytheon was accused of committing major fraud against the United States. Specifically, the company admitted to engaging in two schemes that defrauded the Department of Defense (DOD) related to the supply of defense materials, including its renowned PATRIOT missile systems and radar technology.
“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 separate case, Raytheon has also entered into a three-year DPA in the Eastern District of New York, facing charges of conspiracy to bribe a government official in Qatar. This included failing to disclose these bribes in export licensing applications, violating the Foreign Corrupt Practices Act (FCPA) and the Arms Export Control Act (AECA).
“The Raytheon Company set out to intentionally defraud the U.S. government,” said Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division (CID). “This agreement highlights the importance of integrity when it comes to government contracting. The FBI, with its law enforcement partners, will continue to investigate these types of crimes that waste taxpayer dollars and prosecute all those who are intent on cooking up these major fraud schemes.”
As part of these agreements, Raytheon is required to appoint an independent compliance monitor for three years, strengthen its internal compliance measures, and report any further misconduct to the DOJ. The company will also cooperate with ongoing investigations.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division shared, "Raytheon willfully failed to disclose bribes made in connection with contracts that required export licenses. Today’s resolution should serve as a stark warning to companies that violate the law when selling sensitive military technology overseas.”
In addition to the DPAs, Raytheon has settled related claims under the False Claims Act regarding the pricing schemes. The DOJ’s resolutions are being coordinated with the Securities and Exchange Commission (SEC) to ensure comprehensive oversight.
These developments also prompt federal agencies to evaluate whether Raytheon or associated individuals should face suspension or debarment as federal contractors. The DOJ has referred Raytheon’s admissions to the DOD, starting the process to identify which federal agency will lead these proceedings.
“Over the course of several years, Raytheon employees bribed a high-level Qatari military official to obtain lucrative defense contracts and concealed the bribe payments by falsifying documents to the government, in violation of laws including those designed to protect our national security,” said U.S. Attorney Breon Peace for the Eastern District of New York. “We will continue to pursue justice against corruption, and as this agreement establishes, enforce meaningful consequences, reforms and monitorship to ensure this misconduct is not repeated.”
“Through deliberate and deceptive actions, Raytheon not only defrauded the U.S. government — it compromised the integrity of our defense procurement process,” said Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts. “Our office is committed to holding accountable those who prioritize profits over national security and clear legal obligations. This case underscores our unwavering commitment to pursuing justice, particularly when taxpayer dollars and DOD operations are at stake. We will continue to work tirelessly with our law enforcement partners to ensure that this type of misconduct is fully exposed and addressed with serious consequences.”
This significant settlement underscores the government’s commitment to holding defense contractors accountable for misconduct, ensuring integrity in defense procurement processes.
“Investigating procurement fraud impacting DOD contracts is a top priority for the Defense Criminal Investigative Service (DCIS), the law enforcement arm of the DOD Office of Inspector General,” said Inspector General Robert Storch of DOD. “When DOD contractors fail to provide truthful pricing data and overcharge the government, they undermine the integrity of the DOD procurement process and harm critical DOD programs. The DCIS will continue to work with its law enforcement partners and the Justice Department to ensure DOD contractors that engage in defective pricing schemes are held accountable for their actions. The Defense Contract Audit Agency’s (DCAA’s) Operations Investigative Support Division provided valuable expertise during this investigation.”
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