The ABCs of Corruption · Ledger A · Public Institutions

The Public Trust

Research the Pentagon paid for, an election the states ran, safety reviews Congress assigned to the FDA and the FAA, and procurement budgets that kept paying after the fraud was admitted.

Each of these six cases starts with something the public already owned or had already paid to protect. DARPA funded the research that became Siri. State and county officials ran the 2020 election that Fox told its audience was stolen. Congress built the FDA and the FAA to check a product before it reaches a body or a runway, and then one statute and one pair of technical pilots took the check away. The Pentagon's largest contractors appear twice: Lockheed Martin for a program whose lifetime cost GAO now puts above $2,000,000,000,000, and Raytheon for overcharging on missile contracts while bribing a customer's official abroad.

The common instrument is the standing relationship. The government in these cases is funder, regulator, victim and returning customer at once, and the last role tends to decide the outcome.

A1Public research, private sale

Apple

Siri and DARPA's CALO program

$150,000,000public research funding, by SRI International's count2003 to 2011

Siri began as CALO, the Cognitive Assistant that Learns and Organizes, which was SRI International's project inside DARPA's PAL program. SRI describes it as a five-year, $150,000,000 effort involving more than 300 researchers at 22 institutions, starting with a $22,000,000 award in 2003. SRI spun the work out as Siri, Inc. in 2007. Apple bought the company in April 2010 for a price it never disclosed; TechCrunch reported the strongest rumor at the time as more than $200,000,000. Siri went on sale with the iPhone 4S on 14 October 2011. SRI's own history of the project records no royalty and no equity stake returned to the public that paid for the research.

“The Pentagon built the mind. Cupertino sold it back to us.”
A2Settlement

Fox News

Dominion Voting Systems

$787,500,000paid to Dominion18 April 2023

Fox aired claims for weeks that Dominion Voting Systems had rigged the 2020 election. Dominion sued in Delaware Superior Court on 26 March 2021 for $1,600,000,000. Messages produced in discovery showed hosts and executives, Rupert Murdoch among them, privately disbelieving what the network kept broadcasting. On 31 March 2023 Judge Eric M. Davis ruled it “CRYSTAL clear” that none of the statements about Dominion were true and left one question for the jury, which was whether Fox knew. Fox settled for $787,500,000 on 18 April 2023, the day the trial was to open, so no jury answered it. Fox acknowledged the court's rulings and issued no apology.

“They didn't report the news. They settled it.”

Since

Newsmax settled with Dominion for $67,000,000 on 18 August 2025. Smartmatic's $2,700,000,000 claim against Fox is still pending in New York.

A3Statute

Orrin Hatch

Dietary Supplement Health and Education Act

Public Law 103-417no approval before sale25 October 1994

Senator Orrin Hatch of Utah was the principal Senate sponsor, with Tom Harkin of Iowa, of the Dietary Supplement Health and Education Act, signed on 25 October 1994. The Act put supplements under food rules. The FDA states the result in its own words: it “does not have the authority to approve dietary supplements before they are marketed.” A manufacturer notifies the agency about a new ingredient and no approval follows. Utah's supplement industry, about 120 companies with more than $4,500,000,000 in annual revenue by a 2008 Deseret News count, sells without the review a drug company has to survive.

“They can't call it a cure. They sure knew how to sell it.”
A4Deferred prosecution, later dismissed

Boeing

737 MAX

$2,513,600,000deferred prosecution agreement7 January 2021

Two Boeing technical pilots deceived the FAA's Aircraft Evaluation Group about MCAS, the flight-control software on the 737 MAX, so that the aircraft would be certified with the lightest level of pilot training. Lion Air 610 crashed on 29 October 2018 and Ethiopian 302 on 10 March 2019. 346 people died. On 7 January 2021 Boeing was charged with one count of conspiracy to defraud the United States and entered a deferred prosecution agreement worth $2,513,600,000. Less than a tenth of that was criminal penalty. Most of it was compensation to Boeing's own airline customers.

Where the $2,513,600,000 went

Compensation to airline customers$1,770,000,000
Fund for the families of the 346$500,000,000
Criminal penalty$243,600,000
“They crashed the plane. We paid for the parts anyway.”

Since

The Justice Department told the court on 14 May 2024 that Boeing had breached the agreement. Judge Reed O'Connor rejected a plea deal on 5 December 2024. On 29 May 2025 the department signed a non-prosecution agreement for more than $1,100,000,000 in new money, and the judge dismissed the case on 6 November 2025. The Fifth Circuit turned the families away on 31 March 2026. No suspension or debarment from federal contracting appears on the record, and the Air Force awarded Boeing the F-47 fighter on 21 March 2025.

A5GAO findings

Lockheed Martin

F-35

$2,000,000,000,000the floor of GAO's lifetime cost estimate3 September 2025

GAO calls the F-35 the Defense Department's most expensive weapon system program. Its report of 3 September 2025 puts the lifetime bill above $2,000,000,000,000: $485,000,000,000 to buy the aircraft and at least $1,580,000,000,000 to keep them flying over a 77-year life. The same report found that all 110 aircraft delivered in 2024 arrived late, by an average of 238 days. GAO's report of 11 June 2026 says the share of the fleet able to fly its missions fell from 67 percent to 44 percent between fiscal 2021 and 2025. GAO carried a figure of $1,700,000,000,000 from 2021 through 2023, and the purchases continued through every one of those reports.

GAO's lifetime cost

Sustainment over 77 years$1,580,000,000,000
Acquisition$485,000,000,000
“The most expensive plane in history, and my kid's gym still has a leaking roof.”

Since

The Pentagon's own 2025 acquisition report puts the lifetime total near $1,930,000,000,000, by Breaking Defense's account in August 2026. GAO has not adopted that number.

A6Deferred prosecution

Raytheon

Defective pricing and Qatar bribery

$959,000,000by RTX's own filing; the Justice Department says over $950,000,00016 October 2024

On 16 October 2024 Raytheon agreed to pay more than $950,000,000 to resolve three government investigations at once. About $575,000,000 answered for defective pricing, which means inflating its costs on Pentagon contracts, including PATRIOT missile systems and a radar. About $384,000,000 answered for Qatar, where between roughly 2012 and 2016 the company paid bribes to a senior Qatar Emiri Air Force official through sham subcontracts and then failed to report the payments to the State Department as export law requires. The resolution came with two three-year deferred prosecution agreements and an outside compliance monitor.

What the $959,000,000 answered for

Overcharging the Pentagon$575,000,000
Qatar bribery and export violations$384,000,000
“Cost of the bribe: millions. Cost of losing the contract: zero.”

Since

RTX ranked second in the Defense News Top 100 on 3 September 2026, with $46,000,000,000 in defense revenue.

CaseOutcomeOn the recordDate
ApplePublic research sold privately$150,000,000 public funding2003 to 2011
Fox NewsSettlement on the day of trial$787,500,00018 April 2023
Orrin HatchStatute removing premarket approvalPublic Law 103-41725 October 1994
BoeingDeferred prosecution, dismissed 6 November 2025$2,513,600,0007 January 2021
Lockheed MartinGAO cost and delivery findingsOver $2,000,000,000,0003 September 2025
RaytheonTwo deferred prosecution agreements$959,000,00016 October 2024

Boeing paid a criminal penalty of $243,600,000 for the conduct behind 346 deaths, was found by the Justice Department to have breached its agreement, and was awarded the Air Force's next fighter on 21 March 2025, more than seven months before the case against it was dismissed. Raytheon resolved three investigations in a single day and stood second on the Defense News ranking less than two years later. GAO has reported on the F-35's cost every year since 2021, and the total it carries has risen from $1,700,000,000,000 to more than $2,000,000,000,000. Apple has never been asked for a share of what the public's research became. Fox paid $787,500,000 on the day the jury was to be seated, and the question of what its hosts knew was never put to one. The Dietary Supplement Health and Education Act is 32 years old with the approval gap intact.

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