RTX Corp to Pay $950 Million Over Qatar Bribes, Fraudulent Defense Contracts

Oct 16, 2024, 07:28 PM

RTX Corporation, formerly known as Raytheon Technologies Corp. and a major Pentagon contractor, has agreed to pay over $950 million to the U.S. government to settle charges related to foreign bribery, export control violations, defective pricing schemes, and defrauding the Department of Defense between 2012 and 2018. The settlement resolves a long-running investigation by the Department of Justice and the Securities and Exchange Commission into allegations that Raytheon employees bribed a high-level Qatari military official to secure lucrative defense contracts, concealing the payments by falsifying documents. "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 designed to protect our national security," stated U.S. Attorney Peace. As part of the agreement, RTX's Raytheon unit reached a deferred prosecution agreement and will pay penalties including more than $280 million to resolve criminal charges, $124 million to settle SEC charges for violations of the Foreign Corrupt Practices Act (FCPA), and $574.7 million to settle a U.S. procurement fraud and pricing investigation. The company admitted to overcharging the Department of Defense by $111 million on contracts to purchase RTX products.