US prosecutors are recommending to senior Justice Department officials that criminal charges be filed against Boeing, according to reports.
Prosecutors are suggesting charges after finding the aircraft maker violated an agreement over two fatal crashes, two people familiar with the matter told Reuters.
In May, officials determined the company violated a 2021 agreement that shielded Boeing from a criminal charge of conspiracy to commit fraud stemming from two fatal crashes in 2018 and 2019 involving the 737 MAX jet.
As part of the 2021 settlement, the Justice Department agreed not to prosecute Boeing over allegations that it defrauded the Federal Aviation Administration, provided the company reviews its compliance practices and submits reports regular. Boeing also agreed to pay $2.5 billion to settle the investigation.
The sources did not specify what criminal charges Justice Department officials were considering, but one of the people said they could extend beyond the initial 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 pursuing Boeing, the DOJ could extend the 2021 settlement for another year or propose new, more stringent conditions, the sources said.
In both crashes – in Indonesia in 2018 and Ethiopia in 2019 – MCAS automatically pointed the plane’s nose down due to erroneous sensor readings, and the pilots were unable to regain control.
On October 29, 2018, the Boeing 737 MAX operating 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 operating Ethiopian Flight 302 crashed near the town of Bishoftu, Ethiopia, six minutes after takeoff, killing all 157 people on board.
Investigations into the 2018 and 2019 crashes uncovered a flight control system that Boeing added to the Max without informing pilots or airlines.
Boeing downplayed the system, then only revised it 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 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 operating Ethiopian Flight 302 crashed near the town of Bishoftu, Ethiopia, six minutes after takeoff, killing all 157 people on board.
After secret negotiations, the government agreed not to prosecute Boeing for defrauding the United States by misleading regulators who approved the plane.
In exchange, the company paid $2.5 billion, including a $243.6 million fine, a $500 million victim compensation fund, and nearly $1.8 billion to the airlines. whose Max planes were grounded.
Boeing has faced civil lawsuits, congressional investigations and massive damage to its business since the crashes in Indonesia and Ethiopia.
Glenn Leon, chief of the fraud section of the Justice Department’s criminal division, said in a letter filed in Texas federal court that Boeing had not made changes to prevent it from violating federal anti- fraud – a condition of the 2021 settlement.
The department claims Boeing failed to “design, implement and enforce a compliance and ethics program to prevent and detect violations of U.S. fraud laws,” according to NBC.
Boeing could now be prosecuted “for any federal criminal violations of which the United States is aware,” including the fraud charge the company hoped to avoid with the $2.5 billion settlement, the Department of Defense said. Justice.
Relatives of victims of two fatal 737 MAX crashes have long criticized the 2021 agreement
Boeing said: “We can confirm that we received communication today from the Department of Justice, stating that the Department has determined that we have not fulfilled our obligations under our 2021 deferred prosecution agreement, and asking for the company’s response.
“We believe we have honored the terms of this agreement and look forward to the opportunity to respond to the department on this matter.”
“In doing so, we will work with the Department with the utmost transparency, as we have done throughout the life of the agreement, including in response to their questions following the Alaska Airlines Flight 1282 accident. “
Relatives of victims of the two fatal 737 MAX crashes have long criticized the 2021 settlement, arguing that Justice Department officials should have pursued the company and its executives.
The Justice Department will decide by July 7 whether to pursue the charges, amid increased scrutiny of the safety of the company’s planes.
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