Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Palestinian platforms: Settlers storm Al-Aqsa Mosque complex under the protection of the occupation police
Palestinian platforms: The IOF detonated a booby-trapped robot east of the al-Zaytoun neighborhood, south of Gaza City
Syrian Defense: We call on all parties in Sweida to cooperate with security forces and exercise restraint
Al Mayadeen's correspondent: The Lebanese Army is continuing its investigations and will later announce any information that does not affect the confidentiality of the investigation
Al Mayadeen's correspondent: It has not yet been determined whether the detainees belong to ISIS or another organization
Al Mayadeen's correspondent: Around 10 people of different nationalities, including Lebanese nationals, were detained
Al Mayadeen's correspondent: The Lebanese army arrested a number of people in the Matn area of Mount Lebanon with possession it has not disclosed
Gaza Civil Defense spokesman: We have strong indications that there are martyrs, injuries, and trapped people in the Salah al-Din area
Gaza Civil Defense spokesman: Citizens should avoid Salah al-Din Street because anyone who approaches it is at risk of being directly targeted
Gaza Civil Defense spokesman: Reality is that there is a very limited retreat of the vehicles, with the occupation forces providing cover undeer fire up to Salah al-Din Street

US Raytheon fined near $1 bln for bribery, inflated contracts

  • By Al Mayadeen English
  • Source: News websites
  • 17 Oct 2024 18:57
  • 1 Shares
4 Min Read

Raytheon has agreed to pay the fines and has not denied the claims of fraudulent behavior.

Listen
  • x
  • US Raytheon fined near $1 bln for bribery, inflated contracts
    The facade of Raytheon's Integrated Defense Systems facility on June 10, 2019 in Woburn Massachussets. (AP)

US weapons manufacturer Raytheon has been ordered by the US government to pay over $950 million in fines for inflating federal contracts and bribing high-level foreign military officials, according to an announcement on Wednesday.

A statement by the US Justice Department indicated that Raytheon, a subsidiary of RTX, has not denied the claims and agreed to pay the fines.

The firm will enter into a three-year deferred prosecution agreement (DPA) to resolve the accusations, 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 (DOD) in connection with the provision of defense articles and services, including PATRIOT missile systems and a radar system," the Justice Department's press release said.

Raytheon inflated contracts for more than a decade

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 the operation and maintenance of a radar system.

In both instances, they claim the Defense Department was misled, resulting in Raytheon receiving $111 million more than warranted. Additionally, Raytheon has admitted to consistently providing inaccurate information regarding the costs and pricing of various federal contracts from 2009 to 2020.

Furthermore, the manufacturer has agreed to a separate three-year DPA on two additional charges, including a conspiracy to bribe a high-level Qatari military official and a conspiracy to violate the Arms Export Control Act (AECA) in order to conceal bribes in export licensing applications with the State Department.

Related News

Trump approves Patriot missiles to Ukraine, bills EU for costs

Russia slams US-Denmark military pact as threat to its security

Raytheon is also alleged to have achieved a second False Claims Act settlement with the Justice Department over the flawed pricing techniques.

According to Deputy Assistant Attorney General Kevin Driscoll of the Justice Department's Criminal Division, "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."

Driscoll emphasized, “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."

The two DPA agreements compel Raytheon to maintain an independent compliance monitor for three years, improve its internal compliance program, report evidence of additional misbehavior, and assist in any existing or future criminal investigations, according to the Justice Department.

US Raytheon making billions in blood money from Ukraine arms sales

Raytheon, the world's largest producer of guided missiles, has seen significant profits from military supplies to Ukraine since the war began in February 2022, reversing its previous sales struggles. 

Raytheon Missiles & Defense (RMD), a subsidiary of RTX Corporation focused on missile production, has delivered National Advanced Surface-to-Air Missile Systems (NASAMS) directly to Ukraine.

Since the fourth quarter of 2022, Raytheon has reported five consecutive quarters of revenue growth after facing declines prior. The company’s backlog of signed but unfulfilled defense contracts has increased from $63 billion at the end of 2021 to $77 billion by the end of the second quarter of this year, demonstrating its ability to capitalize on the heightened demand driven by ongoing US military support for Ukraine.

Raytheon has had five consecutive quarters of revenue increase since the fourth quarter of 2022, after dealing with sales declines for four quarters prior, according to the company's most recent financial report.

RMD experienced a downturn in new orders starting in the fourth quarter of 2021, with an 8% year-on-year reduction. By the second quarter of 2022, RMD faced its third consecutive revenue decline, down 11% compared to the previous year. However, this quarter marked a shift as new orders began to reflect increased demand due to the escalating conflict in Ukraine, with $3.56 billion in new sales, including $662 million from Stinger missile replenishments for the US Army.

By the fourth quarter of 2022, RMD reported a 6% year-on-year sales growth, driven by the demand for missiles linked to Ukraine. A significant $698 million contract for the National Advanced Surface-to-Air Missile System (NASAMS) accounted for 17% of its $4.1 billion in new sales for that quarter. As the US continued to supply missiles to Ukraine, RMD saw a steady stream of new orders in the following months.

  • Raytheon
  • Raytheon Missiles
  • United States
  • US Defense Department

Most Read

Hezbollah SG reveals war details on Al Mayadeen for the first time

Hezbollah SG reveals war details on Al Mayadeen for the first time

  • Politics
  • 8 Jul 2025
Major ambush in Gaza kills 6 Israeli troops, injures dozens

Major ambush in Gaza kills 5 Israeli troops, injures 14

  • Politics
  • 8 Jul 2025
Israeli soldiers are seen in Beit Hanoun ahead of an operation by the al-Qassam Brigades, undated (Al-Qassam Brigades Military Media)

'Israel' on blast as media exposes report discrepancies in Gaza ambush

  • Palestine
  • 8 Jul 2025
Yemen Navy sinks ETERNITY C ship, shares footage of operation

Yemen Navy sinks ETERNITY C ship, shares footage of operation

  • Politics
  • 9 Jul 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
The Freedom Flotilla ship Handala as it departs for Gaza, where it aims to break the maritime blockade at a port in Syracuse, Sicily in southern Italy on July 13, 2025. (AFP)
Palestine

Freedom Flotilla's Handala departs Sicily in bid to break Gaza siege

The container ship CMA CGM Laperouse, left, docks at the Georgia Ports Authority's Port of Savannah, Sept. 29, 2021, in Savannah, Ga (AP)
Politics

US shipbuilding woes deepen as tariffs, outdated policies backfire

Gaza war raises ethical questions for ex-Obama, Biden officials
Politics

Mercenary firm tied to Gaza war crimes hires Obama-Biden PR operatives

'Israel' targets children in Gaza collecting water
Palestine

'Israel' strikes Gaza kids fetching water, blames it on 'malfunction'

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS