The U.S. Justice Department is taking a firm stance against Boeing, the aerospace giant, in the aftermath of the devastating 737 Max crashes that claimed the lives of 346 people in Indonesia and Ethiopia. According to attorneys representing the families of the crash victims, federal prosecutors are now pushing Boeing to plead guilty to criminal fraud charges to avoid a full-fledged trial.
The proposed deal would involve Boeing admitting to a fraud charge, submitting to three years of external oversight, and facing additional financial penalties.
However, the families of the victims have expressed outrage at the terms of the deal, arguing that it fails to adequately acknowledge the tragedy and hold Boeing accountable for its actions.
Read: Missouri Sen. Josh Hawley Tells Boeing CEO It’s A ‘Travesty’ That He Still Has His Job
The 737 Max, Boeing’s latest iteration of its best-selling commercial aircraft, was plagued by a series of issues that ultimately led to its grounding worldwide in the wake of the two fatal crashes. The first incident occurred in October 2018 when a Lion Air flight crashed into the Java Sea, killing all 189 people on board. Just five months later, an Ethiopian Airlines flight met a similar fate, crashing shortly after takeoff and claiming the lives of 157 passengers and crew.
Investigations into the crashes revealed that a key factor was a software system called MCAS (Maneuvering Characteristics Augmentation System), which was designed to automatically adjust the aircraft’s nose to prevent stalling. However, the system was found to be flawed, and Boeing was accused of failing to properly inform pilots about its existence and functionality.
In the aftermath of the crashes, the Justice Department reached a deferred prosecution agreement with Boeing in January 2021. Under the terms of this deal, Boeing agreed to pay a $2.5 billion penalty, with $500 million going directly to the families of the victims. The company also committed to strengthening its internal systems to detect and report any potential fraud.
The agreement was intended to shield Boeing from criminal prosecution, provided that the company met the terms of the deal. However, in May 2022, the Justice Department announced that Boeing had breached the agreement, raising the possibility of renewed criminal charges.
Read: Biden Regulators Investigating Counterfeit Chinese Materials Used By Boeing
According to the attorneys representing the families of the crash victims, the Justice Department is now offering Boeing a new deal that would involve the company pleading guilty to a fraud charge. The proposed terms include a nearly $244 million fine, the appointment of an independent monitor to oversee Boeing’s compliance with anti-fraud laws, and a meeting between the company’s board and the victims’ families.
While the Justice Department has not yet formally presented the offer to Boeing, the families have been briefed on the details and have expressed their strong opposition to the deal.
They argue that the agreement does not go far enough in acknowledging the 346 lives lost and fails to hold Boeing accountable for its actions.
Families’ Outrage and Demands
The families of the crash victims have been vocal in their criticism of the proposed plea deal, describing it as a “sweetheart” arrangement that lets Boeing off the hook. They have pushed for harsher penalties, including a $24.8 billion fine, and have called for the Justice Department to prosecute Boeing and its executives criminally.
One family member, Nadia Milleron, whose 24-year-old daughter Samya Stumo died in the second 737 Max crash, expressed her anger, saying, “This is just a reworking of letting Boeing off the hook.” Another lawyer representing the families, Sanjiv Singh, called the plea offer “extremely disappointing” and said it “reads to me like a sweetheart deal.”
Read: Boeing CEO That Has Presided Over Massive Failures, Gets $32 Million Severance
The Potential Consequences for Boeing
If Boeing agrees to the plea deal, it could have significant implications for the company’s future. A criminal conviction could jeopardize Boeing’s status as a federal contractor, as the company has large contracts with the Pentagon and NASA. However, legal experts suggest that federal agencies can grant waivers to companies convicted of felonies, allowing them to maintain their eligibility for government contracts.
Additionally, the proposed deal would include the appointment of an independent monitor to oversee Boeing’s compliance with anti-fraud laws. This oversight could have far-reaching consequences for the company’s operations and decision-making processes, as it would be subject to increased scrutiny and accountability.
The Justice Department’s Dilemma
In weighing how to punish Boeing for the crashes, the Justice Department has faced a complex balancing act. On one hand, there is a strong desire to hold the company accountable and ensure that such tragedies never happen again. On the other hand, the Justice Department must consider the broader implications of its actions, as Boeing plays a crucial role in the nation’s economy and national security.
The decision to offer a plea deal to Boeing reflects the department’s attempt to navigate this delicate situation. By securing a guilty plea, the Justice Department could potentially achieve some level of accountability without inflicting irreparable damage on the company. However, the families of the victims have made it clear that they will not accept anything less than a full-fledged criminal trial and substantial penalties.
The Aftermath of the Alaska Airlines Incident
The proposed plea deal comes in the wake of a recent incident involving a Boeing 737 Max jet operated by Alaska Airlines. In January 2023, a panel blew off the side of the aircraft during a flight, reigniting concerns about the quality and safety of Boeing’s products.
While no major injuries were reported in this incident, it has served as a stark reminder of the ongoing issues surrounding the 737 Max and has heightened the scrutiny on Boeing’s operations. The Justice Department has opened a separate criminal investigation into this incident, further complicating the company’s legal troubles.
The Scapegoating of Boeing Employees
One of the key points of contention in the ongoing legal saga is the role of individual Boeing employees in the 737 Max crashes. The 2021 deferred prosecution agreement had placed the blame on two relatively low-level employees, who were accused of withholding information from the Federal Aviation Administration (FAA) about changes made to the MCAS software.
However, the families of the victims have argued that this scapegoating of individual employees is unacceptable and that the Justice Department should be pursuing charges against higher-level executives who were responsible for the decisions that led to the crashes. The acquittal of a former Boeing technical pilot, Mark Forkner, in 2022 has only further fueled this sentiment.
As the negotiations continue, the spotlight will remain firmly fixed on the Justice Department and Boeing, with the aviation industry and the public closely watching to see how this complex and emotionally charged case is ultimately resolved.
The outcome will undoubtedly shape the future of Boeing, the regulatory landscape, and the public’s trust in the safety of air travel for years to come.
Help support the Tampa Free Press by making any small donation by clicking here.
Android Users, Click To Download The Tampa Free Press App And Never Miss A Story. Follow Us On Facebook and Twitter. Sign up for our free newsletter.