Boeing may evade criminal charges for violating settlement linked to fatal crashes

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The company’s 737 Max 8 model led to two deadly plane crashes in 2018 and 2019.

Family members of victims lashed out at Boeing CEO Dave Calhoun during a Senate hearing that was convened this week.

It is possible that any negotiated resolution – either in the form of an agreement to defer prosecution or a plea deal in which the company would admit wrongdoing – would include the appointment of an independent monitor to oversee the company’s safety protocols. Federal prosecutors said in May that Boeing had violated a previous deferred prosecution agreement by failing to set up and maintain a program to detect and prevent violations of US anti-fraud laws. The settlement was reached in 2021, after Boeing admitted in court that two of its employees had misled federal air safety regulators about a part that was at fault in the two crashes.

That includes Arthur Andersen, a once storied US accounting firm that collapsed after being federally convicted of obstruction of justice for its role in the 2001 Enron scandal. Its demise sent ripples through the financial system and serves as a reminder of the devastation a prosecution of Boeing could have on a company that is critical to the US aviation industry.

The Federal Aviation Administration has faced significant criticism for not exercising enough oversight of Boeing since the Max 8 crashes. The agency failed to ground the 737 Max 8 after the first crash off the coast of Indonesia in 2018, which killed all 189 people on board. Instead, it waited until after a second crash in early 2019 in Ethiopia, which killed 157 people, to finally ground the jets.

A new deferred prosecution agreement would allow the Justice Department to resolve Boeing’s violation without risking a guilty verdict that could potentially harm one of the country’s most economically important companies.But a decision to not prosecute Boeing over the 2021 settlement violation would be a blow to families of those killed in the Max 8 crashes.

Source: News Formal (newsformal.com)

 

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