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Lockheed Martin Pockets $225 Million After Paying Bribe & Settling Fraud Case
Defense contractor earns hefty return after bribing executive for inflated nuclear waste clean up contract.
April 23, 2021
After saying the DOJ’s kickback claims were contrived, Lockheed Martin (LMT), a defense contractor, has settled federal charges alleging it paid bribes to win a nuclear waste cleanup contract in the state of Washington. The DOJ accused Lockheed of paying a $1 million bribe to executives at an affiliate who awarded Lockheed a subcontract at inflated rates. The DOJ also claimed Lockheed lied to the Defense Department about the amount of profit it would earn from the sub-contract.
Recently, a federal court dismissed the DOJ’s kickback allegation but not the claim accusing Lockheed of lying about the profitability of the contract. In its Q1 2021 10-Q, Lockheed disclosed it had agreed to settle the suit:
“Under the terms of the settlement, the defendants agreed to pay $6 million to resolve the remaining claims.”
The settlement appears to have generated a handsome ROI as the sub-contract Lockheed was awarded was worth $232 million. It also appears there were no consequences for the executive at the Lockheed affiliate who was accused of taking the $1 million bribe and awarding Lockheed the inflated subcontract. The filing indicates the executive is now a Vice President currently working at Lockheed.
Related: NOC, GD, BA, RTX, KTOS, TXT
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