SEC at Raytheon

The SEC has transitioned to a fullblown criminal investigation of Raytheon for alleged fraud and accounting malpractice in the sale of its Constructors group to what is now the bankrupt Washington Group Int. WGI, formerly Morrison Knudsen (MK), has abandoned one of the construction projects it inherited and has filed for bankruptcy protection. WGI alleges Raytheon’s misleading accounting practices at the Constructors group caused its problems. Raytheon say WGI had ample access to its accounts and just did its due diligence most undiligently. Only toll project that could be affected is the 895 Connector in Richmond VA in which Flour Daniel is the lead, but another 50% is held by WGI’s MK.