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About POGO's Federal Contractor Misconduct Database (FCMD)

The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »

Raytheon Company

United States v. Hughes Aircraft (Department of Defense Contract False Claims Act Violations)

Date: 05/14/1997 (Date of Settlement)

Misconduct Type: Government Contract Fraud

Enforcement Agency: Defense – General

Contracting Party: Defense - General

Court Type: Civil

Amount: $500,000

Disposition: Settlement

Synopsis: Hughes Aircraft Company and Hughes Aircraft Mississippi, subsidiaries of Raytheon, paid $500,000 to settle allegations that they defrauded the government by not properly testing certain components of torpedoes and using non-conforming fasteners under several Department of Defense contracts in violation of the False Claims Act. An investigation by the Defense Criminal Investigative Service and the Naval Criminal Investigative Service found that Hughes failed to properly test certain electronic components of Advanced Capacity Mark 48 torpedoes sold to the United States Navy. It also found that Hughes used flawed fasteners such as stainless steel screws that failed to meet specifications contained in several other contracts.