The Raytheon Co. has agreed to pay the United States more than $1 million to resolve quality control issues brought to the attention of the government by Raytheon through the Department of Defense’s (DoD) Voluntary Disclosure Act. The settlement was in connection to the failure of Raytheon employees to conduct some of the quality control tests required by contracts with the government to produce components for a number of electronic devices. The DoD’s Voluntary Disclosure Program is designed to encourage defense contractors to voluntarily inform the government of potential civil or criminal fraud matters affecting their corporate contractual relationship with DoD. In addition to reporting the testing deficiencies, Raytheon fired or disciplined 26 employees and replaced senior management personnel in its Quincy, Mass., plant.
In other Raytheon news, one of its units, Raytheon Systems Co., is entering the growing corporate market for computer-security products with high-end software called SilentRunner. The Wall Street Journal reports the company has sold licenses for the product to six federal government agencies involved in defense, intelligence or law enforcement. Raytheon claims the product can identify hard-to-discern patterns of data traffic that signal fraud, insider trading or espionage by a company’s employees.
