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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

Violations of SEC Rules

Date: 06/28/2006 (Date of Settlement Announcement)

Misconduct Type: Securities

Enforcement Agency: SEC

Contracting Party: None

Court Type: Criminal

Amount: $14,774,840

Disposition: Settlement

Synopsis: In June 2006, Raytheon, its former Chairman and CEO, Daniel P. Burnham, and the former Deputy CFO and Controller of Raytheon Aircraft Company (RAC), Aldo R. Servello, settled with the SEC following an investigation into improper disclosure and accounting practices relating to Raytheon’s commercial aircraft manufacturing subsidiary. Pursuant to the settlement, Raytheon agreed to pay a penalty of $12 million and $1 in disgorgement. Burnham and Servello agreed to pay disgorgement of certain past bonus amounts, pre-judgment interest and penalties in the total amounts of $1,238,344 and $34,628, respectively. In March 2007, the SEC settled enforcement proceedings in the same matter against Franklyn A. Caine, the former CFO of Raytheon, Edward S. Pliner, Raytheon's former Controller and former lead auditor, and James E. Gray, the former CFO of RAC. The SEC charged that they were each involved in or aware of the improper practices. Without admitting or denying the SEC's allegations or findings, Caine, Pliner, and Gray agreed to pay a combined total of $1,501,867 to settle the charges.