Tag: defense contractors

Raytheon To Pay Over $950 Million In Settlement Over Fraud, Qatari Bribery, And Export Violations

Raytheon, a subsidiary of defense contractor RTX, has agreed to pay more than $950 million to resolve federal investigations into government contract fraud, as well as violations of anti-corruption and export control laws.

The settlement, announced by the Department of Justice (DOJ) on Oct. 16, addresses allegations involving defective pricing on military contracts with the U.S. government, as well as illegal bribes to a Qatari official, with the resolution involving both civil and criminal penalties.

An RTX spokesperson confirmed the settlement, telling The Epoch Times in an emailed statement that the company acknowledges responsibility for the misconduct and has cooperated with investigators. The company also emphasized its commitment to bolstering its compliance and ethics programs.

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.

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Witnesses backed by military, foreign $$ hype war with Iran

At a House Foreign Affairs Subcommittee hearing on Thursday, witnesses proposed confronting Iran directly by deploying more military capabilities to the Middle East and the authorization of the use of force.

Yet, they conveniently neglected to mention that their employers — which included one Pentagon contractor and several think tanks funded by weapons manufacturers — stand to rake in profits from selling Congress on a military-first approach to Iran.

One of the witnesses of the hearing — billed as “Israel and the Middle East at a Crossroads: How Tehran’s Terror Campaigns Threatens the U.S. and our Allies” — was Kirsten Fontenrose. Fontenrose, a former Trump administration official, testified that the U.S. should pass an Authorization for the Use of Military Force (AUMF), an open-ended congressional resolution that would authorize the president to engage in military action against Iran.

“The U.S. should make it clear to the leadership of Iran’s proxy, drone and missile programs that new capabilities now permit the U.S. and partners to dismantle their facilities and chains of command with low to no risk of negative secondary effects,” she said. “Though ‘AUMF’ is a four letter word in Congress, an Authorized Use of Military Force could convey this quickly and clearly.”

Fontenrose is the President of Red Six Solutions, a red team defense consulting company and Pentagon contractor that prepares clients for threats against unmanned aerial systems. Its website boasts that its “pilot services include UAS operations, training, airspace coordination, event planning, and data generation with all types of UAS to include swarm, large-scale and turbine aircraft.”

According to one of Red Six’s partners, the company has explicitly prepared clients to combat threats from Iran.

Fontenrose is also a non-resident fellow at the Atlantic Council. In a financial conflict of interest document submitted to the subcommittee, Fontenrose disclosed a grant from Norway to the Atlantic Council. Yet, she did not mention the think tank’s funding from Gulf countries, despite being required to list all foreign government contributions related to the hearing’s content. Through embassies and state-owned companies, the UAE and Saudi Arabia (both have had an adversarial relations with Iran) contributed over $3 million and $300,000 respectively to the Atlantic Council over the past two years based on a review of annual reports.

Elliott Abrams, who was convicted of lying to Congress during the Iran-Contra affair, is back on Capitol Hill testifying on — of all things — Iran. During the hearing, Abrams testified that “we have too often been guided by fear of Iran, and have restrained the ability of both our own CENTCOM forces and of our ally Israel in responding to Iranian attacks. It’s past time to put those fears behind us.”

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How EA-18G Growler’s Next Generation Jammer Actually Works And The Future Of Offensive Electronic Warfare

Electronic warfare (EW) has taken on new prominence as the threat from near-peer adversaries has ballooned in recent. Who can best dominate the radio frequency spectrum and take the electronic fight directly to the enemy will have a massive advantage in tomorrow battles.

To find out more about the state of play in offensive EW, we sat down with Chuck Angus, director of business development in Naval Power at Raytheon. He oversees the company’s cutting-edge offensive electronic warfare (EW) portfolio. Angus talked with The War Zone about the latest in offensive EW, his company’s new AN/ALQ-249(V)1 Next Generation Jammer-Mid Band (NGJ-MB) electronic warfare pods (currently installed on EA-18G Growlers aboard the aircraft carrier USS Abraham Lincoln) and the applicability of such systems on sixth-generation fighters and loyal wingman drones. This conversation, which took place on the sidelines of the Air & Space Forces Air, Space & Cyber conference in National Harbor, Maryland, has been slightly edited for clarity.

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Selling War: How Raytheon and Boeing Fund the Push for NATO’s Nuclear Expansion

To “counter Russia’s nuclear blackmail,” the Atlantic Council confidently asserted, “NATO must adapt its nuclear sharing program.” This includes moving B-61 atomic bombs to Eastern Europe and building a network of medium-range missile bases across the continent. The think tank praised Washington’s recent decision to send Tomahawk and SM-6 missiles to Germany as a “good start” but insisted that it “does not impose a high enough price” on Russia.

What the Atlantic Council does not divulge at any time is that not only would this drastically increase the likelihood of a catastrophic nuclear war, but that the weapons they specifically recommend come directly from manufacturers that fund them in the first place.

The B-61 bombs are assembled by Boeing, who, according to its most recent financial reports, gave tens of thousands of dollars to the organization. And the Tomahawk and SM-6 are produced by Raytheon, who recently supplied the Atlantic Council with a six-figure sum.

Thus, their recommendations not only put the world at risk but also directly benefit their funders.

Unfortunately, this gigantic conflict of interest that affects us all is par for the course among foreign policy think tanks. A MintPress News investigation into the funding sources of U.S. foreign policy think tanks has found that they are sponsored to the tune of millions of dollars every year by weapons contractors. Arms manufacturing companies donated at least $7.8 million last year to the top fifty U.S. think tanks, who, in turn, pump out reports demanding more war and higher military spending, which significantly increase their sponsors’ profits. The only losers in this closed, circular system are the American public, saddled with higher taxes, and the tens of millions of people around the world who are victims of the U.S. war machine.

The think tanks receiving the most tainted cash were, in order, the Atlantic Council, CSIS, CNAS, the Hudson Institute, and the Council on Foreign Relations, while the weapons manufacturers most active on K-Street were Northrop Grumman, Lockheed Martin, and General Atomics.

These think tanks directly affect conflicts around the world. CSIS, for example, are among the loudest advocates for arming Ukraine, Taiwan and Israel, even as the latter carries out a genocide in Palestine. A recent report lays out a shopping list of U.S. weapons that would help the Israeli military, including Excalibur artillery projectiles, JDAM bomb guidance systems, and Javelin missiles. Those weapons are manufactured by Raytheon, Boeing, and Lockheed Martin, respectively, all of whom are among CSIS’ top funders.

U.S. arms are being used daily to carry out illegal and deadly attacks against civilian populations in Palestine, Lebanon, and Syria, making arms manufacturers directly complicit in war crimes.

One example of this is the recent Israeli bombing of the Al Mawasi humanitarian zone in Gaza. Israel dropped three one-ton MK-84 bombs on the camp, killing at least 19 people. Dozens more are still missing.

According to the UN, MK-84 bomb blasts rupture lungs, tear limbs and heads from bodies, and burst sinus cavities up to hundreds of meters away.

The MK-84 bombs were produced in the U.S. by General Dynamics and sent to Israel with Washington’s blessing. General Dynamics has made huge profits from the slaughter; the D.C.-based arms manufacturer’s stock price has jumped by 42% since October 7.

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Arms Manufacturers Catching Up With World’s Insatiable Need For 155mm Rounds

 It’s the shell everybody seems to want.

Since the war began in Ukraine the demand for the relatively low-tech 155mm ammunition has skyrocketed, with the nation firing as many as 8,000 rounds per day, according to some published estimates.

From Asia to Europe to the United States, arms manufacturers are building new facilities to boost the capacity to produce the shell, not only to supply Ukraine but also to replenish domestic stocks.

But the captains of the defense industry wonder how long the demand will last and if they risk overbuilding production capacity.

In the United States, the Army is looking to significantly ramp up 155mm production, with a stated goal of producing 100,000 rounds per month by 2025. As of February, the Army was “manufacturing 30,000 155mm rounds per month, doubling its previous output of 14,000 rounds prior to the conflict,” according to a service release.

Doug Bush, assistant secretary of the Army for acquisition, logistics and technology, said the Army is now “on a path” to producing 70,000 to 80,000 rounds per month by the end of 2024 or early 2025.

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Lockheed Martin Develops System to Identify and Counter Online “Disinformation,” Prototyped by DARPA

Various military units around the world (notably in the UK during the pandemic) have been getting involved in what are ultimately, due to the goal (censorship) and participants (military) destined to become controversial, if not unlawful efforts.

But there doesn’t seem to be a lot of desire to learn from others’ mistakes. The temptation to bring the defense system into the political “war on disinformation” arena seems to be too strong to resist.

Right now in the US, Lockheed Martin is close to completing a prototype that will analyze media to “detect and defeat disinformation.”

And by media, those commissioning the tool – called the Semantic Forensics (SemaFor) program – mean everything: news, the internet, and even entertainment media. Text, audio, images, and video that are part of what’s considered “large-scale automated disinformation attacks” are supposed to be detected and labeled as false by the tool.

The development process is almost over, and the prototype is used by the US Defense Department’s Defense Advanced Research Projects Agency (DARPA).

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“Hyperscale” Weapons Factory Vision Outlined By Anduril

Defense technology contractor Anduril has announced plans to build a novel “hyperscale” production facility that will be able to churn out huge numbers of different military products, including uncrewed combat aircraft and autonomous underwater vehicles. The project closely aligns with the Pentagon’s aim of securing the ability to manufacture at scale, to meet future demands, especially for uncrewed systems that are increasingly seen as being critical in potential peer-state conflicts.

The California-based company announced today that it will build the first so-called “Arsenal facility” in the United States, using funding from a recent $1.5-billion Series F investment round. In a document titled Rebuilding the Arsenal of Democracy, Anduril lays out plans for the manufacturing facility, which will measure more than five million square feet and, once up and running, will be able to “produce tens of thousands of autonomous weapons systems addressing the urgent needs of the United States and our allies.”

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Boeing, Money Printing, & The Military-Industrial Complex

Boeing’s commercial jets struggle, but its military machines thrive, all fueled by endless fiat money…

Not-so-mysteriously, none of the problems now associated with Boeing passenger planes seem to be affecting the weapons of annihilation they produce for the Military-Industrial Complex’s borderless global war machine, which is fueled by infinite fiat money.

Myriad problems with Boeing passenger jets have put the company into the news just about every day for months, but the company makes much more than just planes for commercial passenger airlines. Boeing is also a major aerospace contractor that produces fighter jets, attack helicopters, predator drones, missiles, and even the president’s airplane, Air Force One. 

To be fair, Boeing’s record as of late beyond commercial jets is far from perfect — its Starliner, a crewed craft designed to bring astronauts to the ISS, was plagued with issues on the way to the space station that are now being investigated by its astronauts. And Boeing’s main rival in the space industry, SpaceX, has had its own problems with similar craft.

But when was the last time you heard about an Apache helicopter breaking down on its way to deliver a payload of highly-combustible “democracy” to a country unfortunate enough to be on the ever-expanding list of nation-states roped into unnecessary wars waged by the US or one of its global proxies?

Somehow, the systemic quality control issues at Boeing appear much more likely to get a handful of hapless air travelers injured than to cause problems with a military operation that has the “righteous” cause of protecting the petrodollar hegemon. The printing of fiat money fuels both phenomena in different ways.

Boeing’s corner-cutting and quality control issues are just one symptom of living in a fiat money system. As the dollar is debased, the incentive and ability to create solid, long-lasting products is degraded in kind. Manufacturing costs rocket upward as supplies, materials, logistics, storage, maintenance, insurance, wage demands, and every other production factor all increase, leading to a degradation in quality across the process as the irresistible temptation intensifies to prioritize minimizing costs over producing reliable, well-made, quality goods such as safe airplanes. 

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U.S. ‘Defense’ Firms Control the U.S. Government.

The United States is safer from a foreign invasion than any other country, not because it spends half of all of the world’s military expenditures, but because it is separated by over 3,000 miles of ocean away from Europe and from Asia, and because its only two bordering countries are entirely friendly nations, Mexico and Canada — so, there’s no way, short of an invasion from thousands of miles away, that America can be militarily attacked. 

The thing that nations are especially concerned about in national-defense matters is avoiding a blitz attack, which is an attack from a location so near to the nation’s central command — near to its Government — so as to be able to behead the Government too fast for the Government to be able to identify that attack and release its retaliatory forces against its enemy. 

This is what the 1962 Cuban Missile Crisis was all about: JFK needed to prevent placement of Soviet missiles in Cuba only 1,131 miles away from DC, which would have enabled the Soviet Union to blitz-attack America within less than 30 minutes. That’s why JFK threatened to Khrushchev that if they tried that, then America would invade and take over Cuba.

Nowadays the situation is in the reverse direction: Russia’s central command (The Kremlin in Moscow) is only 317 miles away from Ukraine, and on 17 December 2021 Russia formally demanded both America and its NATO to promise that Ukraine won’t be added to NATO and will never host U.S. military; and — entirely unlike what Khrushchev did in 1962 — the U.S. and its NATO responded on 7 January 2022 with a resounding and contemptuous no. Russia invaded Ukraine on 24 February 2022.

What is this actually all about? Empirical studies have shown unequivocally that the U.S. Government is controlled by and represents not its public but only its thousand billionaires plus the politically most active of its centi-millionaires. Each of these individuals is catastrophically wealthy and so can buy enough politicians so that even just the billionaires alone actually do donate more than half of all of the money that funds U.S. political campaigns — the ads, the ‘news’-stories in their ‘news’-media, their think tanks and universities, etc. — in order to drown-out whatever few politicians who simply refuse to be controlled by them.

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Largest European Companies Arming Israel and Their Financiers – Report 

From 2019 to 2023, six of the world’s largest arms producers – Boeing, General Dynamics, Leonardo, Lockheed Martin, RTX, and Rolls-Royce – have sold weapons or weapon systems to Israel.

A new report published by a group of 19 civil society organizations and trade unions has exposed the largest European financial institutions investing billions of euros in international arms producers that sell weapons to Israel.

Titled The Companies Arming Israel and Their Financiers, the report “reveals European financial institutions have provided 36.1 billion EUR in loans and underwritings, and hold 26 billion EUR in shares and bonds in companies selling weapons to Israel,” the International Federation for Human Rights (FIDH) said in a statement on Thursday. The FIDH is one of the organizations involved in the exposé.

From 2019 to 2023, six of the world’s largest arms producers – Boeing, General Dynamics, Leonardo, Lockheed Martin, RTX, and Rolls-Royce – have sold weapons or weapon systems to Israel, the statement said.

It mentioned that French bank BNP Paribas is by far the largest finance provider to companies that have sold weapons to Israel, having provided 5.7 billion EUR in loans and underwritings since 2021.

Other large investors identified by the report include the banks Crédit Agricole, Deutsche Bank, Barclays and UBS, as well as the Norwegian government pension fund GFPG and the insurance company Allianz. It also mentioned banks such as the UK’s HSBC and Standard Chartered.

“According to international standards on business and human rights, financial institutions have a clear responsibility to ensure that they do not invest in companies that contribute to human rights violations”, said Gaëlle Dusepulchre, Deputy Director of FIDH’s Business, Human Rights & Environment Desk.

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