US DoJ Charges Boeing With ‘Conspiracy to Defraud,’ Orders $2.5 Billion in Penalties

A Boeing 737 Max 8 airplane operated by Ethiopian Airlines crashed on March 10, 2019, after taking off from Addis Ababa, Ethiopia, killing all 157 folks on board. On October 29, 2018, a Lion Air-operated 737 Max 8 crashed into the Java Sea simply minutes after taking off from the Indonesian capital of Jakarta. All 189 folks on board have been killed.

In a prison data filed Thursday in the Northern District of Texas, the US Department of Justice (DoJ) charged Boeing with “conspiracy to defraud the US.” As a part of a deferred prosecution settlement, the airplane producer has been ordered to pay $2.5 billion in penalties and compensations following the investigations of the 2 737 Max 8 crashes that led to the deaths of 346 folks. 

“Boeing’s staff selected the trail of revenue over candor by concealing materials data from the FAA [Federal Aviation Administration] regarding the operation of its 737 Max airplane and interesting in an effort to cowl up their deception. This decision holds Boeing accountable for its staff’ prison misconduct, addresses the monetary influence to Boeing’s airline clients, and hopefully offers some measure of compensation to the crash-victims’ households and beneficiaries,” Burns stated.

“The misleading statements, half-truths, and omissions communicated by Boeing employees to the FAA impeded the government’s ability to ensure the safety of the flying public,” US Attorney Erin Nealy Cox for the Northern District of Texas stated in the discharge. “This case sends a clear message: The Department of Justice will hold manufacturers like Boeing accountable for defrauding regulators – especially in industries where the stakes are this high.” 

Boeing has divulged in courtroom paperwork that two of its 737 Max flight technical pilots deceived the FAA’s Aircraft Evaluation Group (AEG) about part of the plane often known as the Maneuvering Characteristics Augmentation System (MCAS).

Due to the deception, key paperwork revealed by the FAA AEG didn’t include enough details about MCAS. 

“We continue to mourn alongside the families, loved ones, and friends of the 346 individuals who perished on Lion Air Flight 610 and Ethiopian Airlines Flight 302. The deferred prosecution agreement reached today with The Boeing Company is the result of the Office of Inspector General’s dedicated work with our law enforcement and prosecutorial partners,” stated Special Agent in Charge Andrea M. Kropf of the Department of Transportation Office of Inspector General Midwestern Region in the discharge.


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