The Department of Justice (DOJ) has announced that Boeing is pleading guilty to criminal fraud charges related to two Boeing 737 MAX crashes. Unfortunately this doesn’t do anything to actually hold the people at the company who are responsible for these problems accountable…
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Boeing accepts 737 MAX plea deal
The biggest story in the aviation industry for the past five or so years has been what a mess Boeing is as a company. The formerly very well respected aerospace giant clearly shifted from being focused on engineering to being focused on short term profits. This finally had fatal consequences in 2018 and 2019, when two Boeing 737 MAXs had crashes, killing 346 people.
It was determined that Boeing had been deceiving regulators who approved the certification of the 737 MAX, in an effort to boost profits. Specifically, this relates to some software on the jet that didn’t exist on older models of the plane, in order to reduce the amount of training pilots would need to fly the plane safely (which was a big selling point of the 737 MAX, given the similarities to previous versions of the aircraft).
At the time, there was a call for Boeing to be held accountable for the accidents. In early 2021, the DOJ announced it wouldn’t prosecute Boeing if the company complied with certain conditions for three years. The DOJ and Boeing reached a settlement with certain conditions. However, not surprisingly, Boeing didn’t actually learn its lesson.
Several weeks ago, prosecutors alleged that Boeing violated the terms of the settlement by not making the promised changes to prevent violations of federal anti-fraud laws. Specifically, Boeing was accused of “failing to design, implement, and enforce a compliance and ethics program to prevent and detect violations of the US fraud laws throughout its operations.”
With this latest update, prosecutors gave Boeing the option of entering into a guilty plea and paying a fine, or facing a trial on the felony criminal charge of conspiracy to defraud the United States. Boeing is pleading guilty to a criminal fraud charge, and is taking the plea deal. If approved by a judge:
- Boeing will have to pay an additional $243.6 million fine, which is similar to the fine paid as part of the 2021 settlement
- The government will appoint someone to oversee Boeing’s quality and safety procedures for a period of three years
- Boeing will invest at least $455 million in its safety and compliance programs
This deal only covers the corporation, and not any Boeing officials, whether current or former. Furthermore, it only covers Boeing for any wrongdoing before the crashes, so Boeing could still face charges for other incidents, like the Alaska Boeing 737 MAX 9 incident earlier this year.
Boeing is too big to fail, be held accountable
While I suppose some accountability for Boeing is better than no accountability, I think this is still a far cry from justice for the aerospace giant. A fine of a couple of hundred million dollars hardly has any implications for the company.
Interestingly, a criminal conviction could technically jeopardize Boeing’s status as a federal contractor, and that’s a huge part of the company’s business. However, I think it’s safe to say that Boeing won’t suddenly lose its government contracts.
On the one hand, that’s fair enough, since it’s not like the government can go to another aerospace manufacturer overnight, and Boeing plays a vital role when it comes to military aerospace. On the other hand, it highlights how Boeing is truly too big to fail, and to be held accountable.
Here’s how a lawyer for some of the families of the Boeing 737 MAX crash victims describes this outcome:
“This sweetheart deal fails to recognize that because of Boeing’s conspiracy, 346 people died. Through crafty lawyering between Boeing and DOJ, the deadly consequences of Boeing’s crime are being hidden.”
Here’s how the family member of one of the Boeing 737 MAX crash victims describes this outcome:
“Boeing has paid fines many a time, and it doesn’t seem to make any change. When people start going to prison, that’s when you are going to see a change.”
Bottom line
Boeing is accepting a plea deal on the felony criminal charge of conspiracy to defraud the United States. The company faced a similar charge in 2021, and the DOJ didn’t prosecute Boeing as long as the company complied with certain conditions for three years. That didn’t happen, so now the company is being charged again.
It’s hard to feel like a fine of under $250 million really does much to move the needle and prevent similar problems in the future.
What do you make of Boeing pleading guilty to to criminal fraud charges?
Boeing is too big to fail, be held accountable
My VERY personal result, since already 8 years on this "reliable" Company and it's passenger jets.
100% NO 737 MAX, 787-8 aircraft for me!
Avoid if anyhow possible ANY BOEING plane as there is plenty others out there to get from A-B these days.
TRUST & ACCOUNTABILITY:
... if just the majority of people who are buying airline tickets would watch more...
Boeing is too big to fail, be held accountable
My VERY personal result, since already 8 years on this "reliable" Company and it's passenger jets.
100% NO 737 MAX, 787-8 aircraft for me!
Avoid if anyhow possible ANY BOEING plane as there is plenty others out there to get from A-B these days.
TRUST & ACCOUNTABILITY:
... if just the majority of people who are buying airline tickets would watch more closely to what they fly and what airline they choose, i think . . . that VERY unreliable airline will go back to produce Military planes ONLY again!
BOEING has played for too long with the trust of innocent but high fare paying people!
If all would choose more careful and not fly airlines that buy aircraft (unreliable and not final approved ones) even if some airlines get huge discounts or even a lot of FREE planes on top, just to buy such unreliable aircrafts as the MAX Series or 787 .... and i guess, soon the 777-X would add to that league!?
BOEING would invest a lot more in safety again!
I wish, they would have learned from the past or Lockheed TriStar planes . . . but i guess NOT?
Because, there is still people out there, who TRUST blindly!
.... in my eyes, unbelievable!
BOEING needs to learn the hard way, that's how i see it!
One would have to be either extremely stupid or blind, deaf and dumb not to agree with STEFEL.
I have for some time now boycotted airlines who do not offer an Airbus alternative.
Those with mixed fleets, I take the schedule with the Airbus aircraft.
Call me stupid if you like, however, please remember one thing …. I am now paying for my own flights and cannot afford to fly private too often.
This slap on the list out to teach them that they can get away with anything, even taking lives.
When a product is defective like a crib that kills babies it is pulled out of the market. It is not modified. A warning label is not attached. When a car is unsafe at any speed it is pulled off the market. It isn't fixed, repaired, or modified. 737 MAX should be terminated, pulled off the market. Imagine building a plane whose very design will cause it to stall and crash on every takeoff killing everyone on board. That is what Boeing did. That is insanity.
Outgoing ceo all executives and two pilots who suppressed information all should go to federal prison for a minimum period ten years to 20 yrs
And Boeing should pay enhanced compensations to victims next of kin
Or her/his dependents and parents
If the dead is a highly qualified
Professional like doctors engineers
Scientists their compensation should be proportionately increased
Thanks
So Boeing's fine is about the same dollar amount as the list price of a 787-8?
That's weak. Just goes to show you that to companies like Boeing the deaths of a few hundred people is nothing more than the cost of doing business.
A whole plane full of lives, financially swept under the rug. It sickens me
two planes
Corporations are not people, and thus cannot have emotion nor remorse. So when fines are the only punishment, those fines simply become the cost of doing bigger business.
Why do things legally and only make $1 billion, when if you cheat and break the law, you can make many billions more, with just a $250 million fine? You're leaving free money on the table if you therefore don't break the law!
Soul-less corporations don't...
Corporations are not people, and thus cannot have emotion nor remorse. So when fines are the only punishment, those fines simply become the cost of doing bigger business.
Why do things legally and only make $1 billion, when if you cheat and break the law, you can make many billions more, with just a $250 million fine? You're leaving free money on the table if you therefore don't break the law!
Soul-less corporations don't care about lives lost or families devastated. They only care about the bottom line.
LOCK THEM UP!
Disgusting what lightly regulated capitalism can get by with.
Boeing buys MD. MD is in Charge
Boeing buys Spirit. Spirit in charge
Engineering over financial
This is ridiculous and they need to actually be punished.
This is 100% proof to the world of how corrupt our government really is.
Unfortunately, holding Boeing accountable is like holding no one accountable, the people played a key role under these decisions may already get their profit and interests left the table, and basically get what they want.
This is laughable. Irrespective of the party in WH, every AG and DOJ follows this script…settle and pay fine. As if, the fines deterred such behavior from those companies, board and executives. If an individual is a repeat offender, (s)he needs to be locked up for life but for corporations, a fine equivalent to tiny amount of their annual profit is enough.
Neither any politician now any DOJ attorney has balls to take on big...
This is laughable. Irrespective of the party in WH, every AG and DOJ follows this script…settle and pay fine. As if, the fines deterred such behavior from those companies, board and executives. If an individual is a repeat offender, (s)he needs to be locked up for life but for corporations, a fine equivalent to tiny amount of their annual profit is enough.
Neither any politician now any DOJ attorney has balls to take on big companies. In an ideal world, whole board, all executives and FAA folks in charge would be put to permanent sleep for 346 murder charges.
It makes you realise that a lot of the time, the only difference between the USA and Russia is that we speak English and call corruption “lobbying”.
Criminal rich white guys getting away with literal murder is a sh*t stain on human history.
And your comment shows how ignorant you are. As well as racist.
What is racist about saying we speak different languages? He's not wrong about the grift in Congress and complete lack of accountability... most recently made famous by Nancy Pelosi and Ted Cruz's S&P-beating record on trading.
"Insider trading is bad, unless the insider is in charge. Then it's legal!"
And exactly how is lobbying appropriate? Since we are a two-party system, any competent corporation knows to donate to both parties, because that assures victory for...
What is racist about saying we speak different languages? He's not wrong about the grift in Congress and complete lack of accountability... most recently made famous by Nancy Pelosi and Ted Cruz's S&P-beating record on trading.
"Insider trading is bad, unless the insider is in charge. Then it's legal!"
And exactly how is lobbying appropriate? Since we are a two-party system, any competent corporation knows to donate to both parties, because that assures victory for the donors.
I'm pretty sure he was butt hurt about the "criminal white men" comment. It made him feel oppressed.
A famous Mexican politician once said:
"A political problem that is solved with **only** money, is a cheap problem"
I can think of a good punishment for criminally negligent corporations that are "too big to fail". Nationalization.
Great answer because we all know the government is better at it.
How about criminal charges for any/all culprits and no the company won't pay your legal fees.
You profited on your choices. You can lose the criminal proceeds when you mortgage everything you own for your legal defense.
Why not both? I agree that the execs who pushed for unsafe design choices should face criminal charges for it. It also stands to reason that if an industry is so vital to the country's transportation network and national defense that it should not be a private, investor-owned company. After all, slavishly chasing quarterly returns is what got us here in the first place. As a country, we'd benefit not just from Boeing being beholden...
Why not both? I agree that the execs who pushed for unsafe design choices should face criminal charges for it. It also stands to reason that if an industry is so vital to the country's transportation network and national defense that it should not be a private, investor-owned company. After all, slavishly chasing quarterly returns is what got us here in the first place. As a country, we'd benefit not just from Boeing being beholden to the country rather than shareholders, you'd also get a more effective FAA out of it since now you have plenty of skilled aviation engineers in-house rather than relying on corporations self-certifying themselves.
The idea that private companies are *always* more efficient than government is laughable and mostly a US thing, thanks to right wingers spending decades defanging and defunding public institutions in order to justify privatizing them for personal profit.
Wouldn't happen at Delta
One of two (well, ideally both) things needs to happen to fix this culture of corporate impunity: 1) fines based upon average operating revenue over a period of years and not simply an $X fine; and/or 2) personal criminal and civil liability for an offending company's C-Suite.
And no wonder the last airline to purchase the MAX was El Al. Criminals stick together.
Boeing and Israel are suitors in crime, partners in genocide. Especially with the military sales from Boeing to fund killing of 15000 children.
Looks llke anti-semite rides again!
Get you head out of your A..ss , killing 15,000? Blame the Palestine people and Hamas .
Boeing is literally a crime. A negligent entity, that puts profit over safety. It won't survive this. It will end up as a unit of a major US defense contractor and be rebranded.
Space X needs to get into the airliner business.
You seriously think that Musk is going to put the lives and safety of people first ahead of the company?
Guess those Teslas that mistook traffic and rammed into things were just people doing it on purpose
This is a travesty of justice. Boeing execs need to go to jail. This includes former company executives as well, whoever was responsible for the decisions that led to all these deaths.
I'm more disgusted with the so called "Department of Justice" than I am with Boeing. Those "fines" are pocket change. And in return the DOJ shields Boeing from real accountability. Sweetheart deals are well and truly alive in softc0ck Garland's DOJ fiefdom.
Plus ça change, plus c'est la même chose.
Individuals at Boeing (and we’re not talking peons, we’re talking C-suite occupants) DO need to be jailed. Won’t ever happen, though.
Prison should be off the table for anything other than physical violence. Prison isn’t retribution. Prison isn’t punishment. Prison is for people who, if roaming about society, will actively physically harm others.
What the culpable executives at Boeing need to face is capital punishment.
Your definition of what prison is for is cute and naïve and novel and moronic.
And by your own definition, Boeing execs belong in prison by actively physically harming others.
you missed the last sentence in his post
The best way to punish them is by taking away their money. Proving intent in a capital murder case would be nigh on impossible.
I'd also challenge the notion that prison is not punishment. I know someone who spent two years in a medium security prison for a financial crime, and it was a very, very unpleasant experience. At the end of the day you could be locked-up in the penthouse at The Mark and you still wouldn't have your freedom.