Boeing Faces Potential Criminal Charges Over 737 Max Crashes and Alleged Fraud

Seattle, WA, Washington, USA United States of America
Boeing allegedly violated a deferred prosecution agreement by failing to design, implement, and enforce a compliance and ethics program to prevent violations of US fraud laws.
Boeing CEO Dave Calhoun faced questioning during a Senate hearing about the company's safety record and handling of whistleblower concerns.
Boeing faces potential criminal charges from the US Department of Justice over 737 Max crashes and alleged fraud.
FAA audit found multiple instances of Boeing's failure to comply with manufacturing quality control requirements.
The crashes were caused by a new design feature called manoeuvring characteristics augmentation system (MCAS) which left planes vulnerable if a single sensor failed.
Two fatal crashes of Boeing's 737 Max planes occurred in 2018 and 2019, resulting in nearly 350 deaths.
Boeing Faces Potential Criminal Charges Over 737 Max Crashes and Alleged Fraud

Boeing, the American multinational aerospace and defense corporation, is facing potential criminal charges from the US Department of Justice (DoJ) over its role in two fatal crashes of its 737 Max planes that occurred in 2018 and 2019. The crashes resulted in the deaths of nearly 350 people. According to various reports, Boeing violated a deferred prosecution agreement it had reached with the DoJ in 2021 by failing to design, implement, and enforce a compliance and ethics program to prevent violations of US fraud laws. The crashes were caused by a new design feature called manoeuvring characteristics augmentation system (MCAS), which dipped the nose of the planes automatically to compensate for shifting larger engines forward. This left the planes vulnerable if a single sensor failed, as was the case in both crashes.

The DoJ has until July 7 to decide whether it will file criminal charges against Boeing. If charges are filed, they could go beyond the original fraud conspiracy charge outlined in the 2021 settlement agreement. The settlement agreement protected Boeing from a fraud charge related to its alleged concealment of information from aviation regulators over how the system worked.

Boeing's CEO, Dave Calhoun, who is set to retire later this year, faced questioning during a Senate hearing last week about the company's safety record and its handling of whistleblower concerns regarding safety problems in factories. The families of crash victims have called for an independent corporate monitor to oversee Boeing as it faces renewed scrutiny.

The FAA conducted an audit that found multiple instances of Boeing's failure to comply with manufacturing quality control requirements. This adds to the ongoing crisis at Boeing over aircraft safety, following a door panel blowing out of an Alaska Airlines plane in mid-air in January 2024. The incident grounded all similar planes and sparked a massive FAA investigation.

Boeing declined to comment on the potential criminal charges.



Confidence

91%

Doubts
  • It is unclear if the potential criminal charges will go beyond the original fraud conspiracy charge.
  • The DoJ has not yet decided whether it will file criminal charges against Boeing.

Sources

99%

  • Unique Points
    • Boeing is facing the prospect of criminal charges after US prosecutors recommended them to the Department of Justice (DoJ)
    • Boeing failed to design, implement, and enforce a compliance and ethics programme to prevent and detect violations of US fraud laws
    • The crashes were caused by a new design that dipped the nose of the planes automatically to compensate for shifting larger engines forwards, leaving them vulnerable if a single sensor failed
  • Accuracy
    • ]Boeing is facing the prospect of criminal charges after US prosecutors recommended them to the Department of Justice (DoJ)[
    • Boeing should face criminal charges, say US prosecutors
    • Federal prosecutors are recommending criminal charges against Boeing for failing to meet the terms of a 2021 agreement related to crashes in 2018 and 2019 that killed 346 people.
    • Boeing faces calls for an independent corporate monitor from families of crash victims
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

98%

  • Unique Points
    • Federal prosecutors are recommending criminal charges against Boeing for failing to meet the terms of a 2021 agreement related to crashes in 2018 and 2019 that killed 346 people.
    • Boeing violated terms of a deferred prosecution agreement in May and faces several options including criminal charges, settlement under a new deferred agreement, additional fines, independent monitor and trial.
  • Accuracy
    • ]Federal prosecutors are recommending criminal charges against Boeing for failing to meet the terms of a 2021 agreement[
    • Boeing faces the prospect of criminal charges after US prosecutors recommended them to the Department of Justice (DoJ)
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

98%

  • Unique Points
    • Boeing faces calls for an independent corporate monitor from families of crash victims (not in other articles)
    • , Two Boeing 737 Max crashes killed nearly 350 people in 2018 and 2019 (same but not contradictory)
    • FAA audit found multiple instances of Boeing’s failure to comply with manufacturing quality control requirements (not in other articles)
  • Accuracy
    • Boeing faces calls for an independent corporate monitor from families of crash victims
    • 346 passengers died in the crashes of Boeing 737 Maxes operated by Lion Air and Ethiopian Airlines in late 2018 and early 2019
    • Boeing reached a deferred prosecution agreement with the DoJ in 2021 and agreed to pay $2.5bn in penalties and compensation
    • Federal prosecutors are recommending criminal charges against Boeing for failing to meet the terms of a 2021 agreement related to crashes in 2018 and 2019 that killed 346 people.
    • Boeing violated terms of a deferred prosecution agreement in May and faces several options including criminal charges, settlement under a new deferred agreement, additional fines, independent monitor and trial.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication