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Thu, Feb 09, 2012

Raytheon Exec Faces Fines In $1 Billion FAA Lawsuit

Judge Says He Did Not Disclose A Reprimand Letter Dealing With Sexual Affair With A Subordinate

A Washington court has fined a Raytheon executive because he did not reveal he had been given a letter of reprimand for engaging in an affair with a subordinate. The letter was deemed evidence in a lawsuit over a consulting contract with the FAA.

While an employee at FAA, Charles E. Keegan, who now heads Raytheon's Civil Aviation Division, had been having an affair with a co-worker at the agency. The woman was eventually put in charge of a contracting program, and Keegan went to work for Raytheon ... which was awarded multi-million dollar contract over Washington Consulting Group, which had held the contract for over two decades. The relationship was investigated by the DOT IG and found to be "inappropriate". The IG said it created a "perception of favoritism."

Bloomberg Business Week reports that Washington Consulting Group sued Raytheon and Keegan for $1 billion. The judge, while not saying definitively whether Keegan intentionally or inadvertently withheld the document, did say the end result was the same ... and ordered Keegan to pay some of Washington Consulting Groups attorney's fees.

Raytheon continues to maintain that the suit is without merit. It says it will vigorously defend its self and Keegan. Washington Consulting Group says the case will force Raytheon to "face public scrutiny for its misconduct."

FMI: www.raytheon.com, www.washcg.com

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