Raytheon to Pay Close to $1 Billion Dollar Settlement over Bribes, Fraud and Export Violations

So who did Raytheon fail to pay off in the U.S. comes to mind. Bribery and Overcharging gets you no criminal charges apparently.

Under the agreement, the company will have to demonstrate good conduct for the next 3½ years and foster a culture of ethics and compliance with anti-corruption laws. Even better?

Military.com:

According to court and regulatory filings, the company is expected to soon enter into another deferred prosecution agreement to resolve civil and criminal investigations in Massachusetts into defective pricing claims for Raytheon contracts dating from 2011 to 2017.

In August, the company agreed to pay $200 million to the State Department after voluntarily disclosing more than two dozen alleged violations of the Arms Export Control Act and International Traffic in Arms Regulations.

Among the allegations were that the company provided classified military aircraft data to China and that employees took company-issued laptops containing information about missiles and aircraft into Iran, Lebanon and Russia.

Raytheon fires the employees involved. That’s it? No jail time?  And “They will retain an independent compliance monitor for three years” and pay close to a $Billion buckeroos

Sounds like a good deal to me. Here at the two involved two cases.

Raytheon in Qatar alone:

Defense contractor Raytheon agrees to pay $252M penalty to resolve Qatar bribery charges

Zero hedge picks it up:

Raytheon has admitted to two major fraud schemes affecting Department of Defense (DoD) contracts, including the provision of PATRIOT missile systems and radar systems.

In the first case, Raytheon employees provided defective pricing information, leading the DoD to overpay on two contracts by roughly $111 million between 2012 and 2018.

In a separate scheme, Raytheon failed to provide accurate cost or pricing data for numerous DoD contracts, including a weapons maintenance agreement, leading to further inflated payments.

Under the terms of a three-year deferred prosecution agreement, Raytheon will pay a criminal monetary penalty of $146.8 million and $111.2 million in victim compensation and retain an independent compliance monitor for three years.

The company received a 25 percent reduction in penalties for taking remedial actions, such as firing employees responsible for the misconduct and implementing new controls to prevent future fraud.

Additionally, Raytheon has agreed to pay $428 million to settle False Claims Act allegations related to providing false data during contract negotiations with the DoD. As part of the settlement, Raytheon admitted it misrepresented labor and material costs for weapon systems and double-billed on a radar station contract.

“The department is committed to holding accountable those contractors that knowingly misrepresent their cost and pricing data or otherwise violate their legal obligations when negotiating or performing contracts with the United States,” Principal Deputy Assistant Attorney General Brian M. Boynton, head of the DOJ’s Civil Division, said in a statement.

…

Bribery Scheme in Qatar

Raytheon also faced charges under the Foreign Corrupt Practices Act (FCPA) and the Arms Export Control Act (AECA) for a bribery scheme in Qatar.

The company was accused of paying nearly $2 million in bribes to Qatari military officials between 2011 and 2017 to secure lucrative defense contracts through sham subcontracts.

From the early 2000s to 2020, Raytheon also paid more than $30 million to a Qatari agent, a royal family member with no military contracting experience, despite numerous internal warnings about corruption risks.

In this case, which involved a parallel investigation by the Securities and Exchange Commission (SEC), Raytheon was accused of failing to adequately document the agent’s services while continuing to rely on this relationship to obtain defense contracts.

As part of a settlement with the SEC, Raytheon agreed to pay $124 million in penalties, with $22.5 million of that amount offset by a parallel DOJ fine.

In addition, Raytheon entered into a separate deferred prosecution agreement with the DOJ for the bribery violations, which includes a $230.4 million criminal fine and a $37 million forfeiture. The company will also retain an independent compliance monitor for three years.

“Raytheon willfully failed to disclose bribes made in connection with contracts that required export licenses,“ Matthew Olsen, Assistant Attorney General of the DOJ’s National Security Division, said in a statement. ”Today’s resolution should serve as a stark warning to companies that violate the law when selling sensitive military technology overseas.”

Keep reading

One wonders how much we are getting hosed in Ukraine

From Bunks previous post:

Biden Pathetically Changes War Message; sells Ukraine Funding by Appealing to Profit Motives

Biden awkwardly pivoted to the supposed economic benefits that will come from borrowing even more money and shoveling it into the coffers of weapon manufacturers: 

“We send Ukraine equipment sitting in our stockpiles. And when we use the money allocated by Congress, we use it to replenish our own stores, our own stockpiles with new equipment. Equipment that defends America and is made in America. Patriot missiles for air defense batteries, made in Arizona. Artillery shells manufactured in 12 states across the country, in Pennsylvania, Ohio, Texas. And so much more.”

Last gasp effort. Behold the vast Military Industrial Complex. Just one more:

Northrup to Build Munitions Plant Inside Ukraine

June 21, 2024 — bunkerville

The swamp gives up a revelation today.

Source: https://bunkerville.wordpress.com/2024/10/18/raytheon-to-pay-close-to-1-billion-dollar-settlement-over-bribes-fraud-and-export-violations/