US prosecutors suggest felony fees towards Boeing
U.S. prosecutors are recommending to senior Justice Department officials that criminal charges be brought against Boeing, according to reports.
Prosecutors are suggesting charges after finding the plane maker violated a settlement related to two fatal crashes, two people familiar with the matter told Reuters.
In May, officials determined the company breached a 2021 agreement that had shielded Boeing from a criminal charge of conspiracy to commit fraud arising from two fatal crashes in 2018 and 2019 involving the 737 MAX jet.
Under the 2021 deal, the Justice Department agreed not to prosecute Boeing over allegations it defrauded the Federal Aviation Administration so long as the company overhauled its compliance practices and submitted regular reports. Boeing also agreed to pay $2.5 billion to settle the investigation.
The sources did not specify what criminal charges Justice Department officials are considering, but one of the people said they could extend beyond the original 2021 fraud conspiracy charge.
Prosecutors are recommending criminal charges against Boeing for violating an agreement stemming from two fatal crashes in 2018 and 2019 involving the 737 MAX jet
Alternatively, instead of prosecuting Boeing, the DOJ could extend the 2021 settlement by a year or propose new, stricter terms, the sources said.
In the two crashes – in Indonesia in 2018 and in Ethiopia in 2019 – MCAS automatically pointed the nose of the plane down based on faulty sensor readings, and pilots were unable to regain control.
On October 29, 2018, the Boeing 737 MAX operating the Lion Air Flight 610 crashed into the Java Sea 13 minutes after takeoff, killing all 189 passengers and crew.
Five months later, on March 10, 2019, the Boeing 737 MAX 8 aircraft which operated Ethiopian flight 302 crashed near the town of Bishoftu, Ethiopia, six minutes after takeoff, killing all 157 people aboard.
Investigations into the 2018 and 2019 crashes pointed to a flight-control system that Boeing added to the Max without telling pilots or airlines.
Boeing downplayed the significance of the system, then didn´t overhaul it until after the second crash.
The Justice Department investigated Boeing and settled the case in January 2021 .
On October 29, 2018, the Boeing 737 MAX operating the Lion Air Flight 610 crashed into the Java Sea 13 minutes after takeoff, killing all 189 passengers and crew
On March 10, 2019, the Boeing 737 MAX 8 aircraft which operated Ethiopian flight 302 crashed near the town of Bishoftu, Ethiopia, six minutes after takeoff, killing all 157 people aboard
After secret negotiations, the government agreed not to prosecute Boeing on a charge of defrauding the United States by deceiving regulators who approved the plane.
In exchange, the company paid $2.5 billion – a $243.6 million fine, a $500 million fund for victim compensation, and nearly $1.8 billion to airlines whose Max jets were grounded.
Boeing has faced civil lawsuits, congressional investigations and massive damage to its business since the crashes in Indonesia and Ethiopia.
Glenn Leon, head of the Justice Department criminal division’s fraud section, said in a letter filed in Texas federal court that Boeing failed to make changes to prevent it from violating federal anti-fraud laws – a condition of the the 2021 settlement.
The department claims that Boeing failed to ‘design, implement, and enforce a compliance and ethics program to prevent and detect violations of the U.S. fraud laws’, according to NBC.
Boeing could now be prosecuted ‘for any federal criminal violation of which the United States has knowledge,’ including the charge of fraud that the company hoped to avoid with the $2.5 billion settlement, the Justice Department said.
Relatives of the victims of the two fatal 737 MAX crashes have long criticized the 2021 agreement
Boeing said: ‘We can confirm that we received a communication today from the Justice Department, stating that the Department has made a determination that we have not met our obligations under our 2021 deferred prosecution agreement, and requesting the company’s response.
‘We believe that we have honored the terms of that agreement, and look forward to the opportunity to respond to the Department on this issue.
‘As we do so, we will engage with the Department with the utmost transparency, as we have throughout the entire term of the agreement, including in response to their questions following the Alaska Airlines 1282 accident.’
Relatives of the victims of the two fatal 737 MAX crashes have long criticized the 2021 agreement, arguing that Justice Department officials should have prosecuted the company and its executives.
The Justice Department will decide whether to pursue charges, amid increasing scrutiny over the safety of the company’s planes, by July 7.
