The U.S. Justice Department says Boeing has agreed to plead guilty to a criminal fraud charge stemming from two deadly crashes of 737 Max jetliners. Now it’s up to a federal judge whether to accept the plea and a sentence that is part of the aerospace giant’s deal with U.S. prosecutors.

Washington

Boeing has agreed to plead guilty to criminal fraud charges related to two fatal crashes of its 737 Max jetliners, according to the U.S. Justice Department. The proposed plea, which must be approved by a federal judge, follows an agreement that aimed to enhance plane safety and has shielded Boeing from prosecution since the crashes, which resulted in the deaths of 346 individuals.

The aerospace giant is also under scrutiny for other safety issues, including an incident where a door panel blew off during a midair emergency on an Alaska Airlines flight. Boeing's CEO, Dave Calhoun, faces criticism and congressional demands for his resignation amid the investigations, including an inquiry into allegedly falsified inspection records for 787 aircraft.

Under the terms of the deal, Boeing would pay a $487 million fine, invest $455 million in new compliance and safety measures, and accept oversight from federal inspectors. The board of directors would also meet with families of the 737 Max crash victims. However, some victims' families and their legal representatives argue that the plea deal is insufficient, contending that Boeing's actions warrant manslaughter charges rather than fraud. 

If labeled a corporate felon, Boeing's ability to secure government contracts could be compromised, affecting a significant portion of its revenue. Last year, government contracts accounted for 37% of Boeing's income.



Boeing to plead guilty to criminal fraud charges

Boeing will plead guilty to criminal fraud charges. The U.S. government says the airline manufacturer violated an agreement that was designed to make planes safer. This agreement was also protecting the industry giant from prosecution ever since two of its MAX 737 jetliners went down, killing 346 people more than three years ago. The timing couldn't be worse for Boeing. It's still under investigation for a string of other safety lapses including that January midair emergency when a door panel blew out of an Alaska Airlines flight. CEO Dave Calhoun has been in the hot seat. Congressional leaders are demanding his head. What is it you get paid to do exactly? I get paid to run the Boeing company. Really? Because you're under investigation for falsifying 787 inspection records. The Boeing's under criminal investigation for the Alaska Airlines flight. He announced plans to step down at the end of the year. Under the terms of the proposed deal, Boeing will pay the maximum fine allowed by law, $487 million, spend another $455 million on new compliance and safety programs, agree to monitoring by federal inspectors, and have its board meet with the family of those fatal 737 crashes. And though this guilty plea would make Boeing a corporate felon, victims' families are not happy. In response to the deal, Paul G. Cassell, a lawyer for more than a dozen families, says this sweetheart deal fails to recognize that because of Boeing's conspiracy, 346 people died. Through crafty lawyering between Boeing and the DOJ, the deadly consequences of Boeing's crime are being hidden. They wanted manslaughter, not fraud. This deal still needs to be approved by a federal judge in order to take effect. Now being labeled a corporate felon in theory could affect the company's ability to be a government contractor, but there's so much at stake, guys. 37% of Boeing's revenue last year came from government contracts.

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