The Securities and Exchange Commission claim that three former Raytheon Co. executives from 1997 to 2001 disguised the aircraft division’s weakening fiscal situation. Now, three previous Raytheon executives — former CFO Franklyn A. Caine, former Controller and Lead Auditor Edward S. Pliner, and former CFO James E. Gray — will pay $1.5 million to settle charges of their participation in that act without admitting or denying the allegations, according to the Associated Press. Caine and Pliner will pay civil penalties of $125,000 and $150,000, respectively along with restitution of past bonuses, plus interest. Raytheon last June agreed to pay a $12 million fine to settle. Former Chairman and CEO Daniel Burnham at that time agreed to pay $1.2 million and Aldo Servello, then-deputy CFO and controller, agreed to pay $34,628.
SEC And Former Raytheon Execs Settle
Key Takeaways:
- Three former Raytheon executives will pay a total of $1.5 million to settle SEC charges that they disguised the aircraft division's weakening financial situation from 1997 to 2001.
- The settlement, which includes civil penalties and restitution of past bonuses for two of the executives, was reached without them admitting or denying the allegations.
- This action follows earlier resolutions where Raytheon Co. paid a $12 million fine and other former executives, including the Chairman and CEO, paid penalties for related financial misconduct.
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