Department of Justice Official: Boeing to Admit Fraud Charges in Investigation of Fatal Crashes
An official from the US Department of Justice has announced that aviation giant Boeing will admit to US fraud charges related to the fatal 737 MAX plane crashes. With this development, Boeing is expected to pay a fine of $243 million, bringing the company’s total penalties for fatal crashes to the maximum level.
Boeing Admits Guilt
The Department of Justice official stated that Boeing will admit guilt in the US investigation into the fatal 737 MAX crashes. This admission will allow Boeing to avoid criminal prosecution, but it will result in the company being branded as a convicted criminal. The plea requires the approval of a federal judge.
$243 Million Fine
The Department of Justice official also mentioned that Boeing will pay a fine of $243.6 million. This will be Boeing’s second fine of $243.6 million related to fatal crashes, bringing the total penalty to the maximum level. The company had previously paid this fine as part of a $2.5 billion settlement in 2021.
Crashes That Caused the Death of 346 People
Boeing was accused of causing the deaths of 346 people in 737 MAX crashes in Indonesia and Ethiopia in 2018 and 2019. Boeing faced criminal prosecution after the Department of Justice found in May that the company had violated its 2021 agreement related to the fatal crashes.
Fraud and Misrepresentation
Boeing is admitting guilt to knowingly misrepresenting to the Federal Aviation Administration (FAA) about extending a critical software feature used in the MAX to operate at low speeds. This software saved Boeing money by requiring less intensive training for pilots. The Maneuvering Characteristics Augmentation System (MCAS) is a software feature designed to automatically push the plane’s nose down under certain conditions. It was linked to the two crashes that led the FAA to ground the aircraft for 20 months, costing Boeing $20 billion.
As part of the agreement, the official stated that Boeing’s board will meet with the families of those who died in the MAX crashes.
Boeing also announced that it had reached a principle agreement with the Department of Justice on the terms of the resolution.
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