SEC Charges Virginia-Based RTX Corp. with Violating Foreign Corrupt Practices Act in Connection with Efforts to Obtain Contracts with the Qatari Military

The Securities and Exchange Commission (SEC) announced that RTX Corporation, a Virginia-based aerospace and defense company, has agreed to pay more than $124 million to resolve charges related to violating the Foreign Corrupt Practices Act (FCPA). RTX, formerly known as Raytheon Technologies Corp., used sham subcontracts with a supplier to make nearly $2 million in bribes to Qatari military officials to obtain contracts. The company also paid over $30 million to a Qatari agent who was a relative of the Qatari Emir despite lacking prior experience in military defense contracting.

Raytheon obtained additional defense contracts through the agent under circumstances with significant corruption risks, and despite employee concerns about corruption risks, the company continued working with the agent. The SEC's order finds that Raytheon violated antibribery, internal accounting controls, and books and records provisions of the FCPA. As part of the resolution, RTX must cease and desist from committing or causing future violations, pay disgorgement and prejudgment interest of approximately $49 million, and pay a civil penalty of $75 million. The company also agreed to retain an independent compliance monitor for three years.