Boeing Agrees to Plead Guilty to Criminal Fraud Charges Over 737 Max Crashes, Faces Potential $687 Million Penalty

Seattle, WA, Washington United States of America
Boeing agreed to plead guilty to criminal fraud charges related to the 737 Max crashes in Indonesia and Ethiopia in 2018 and 2019.
Boeing concealed information from regulators about the flight-control system implicated in the crashes.
Boeing faces potential fines of up to $687 million.
The crashes resulted in the deaths of 346 people.
Boeing Agrees to Plead Guilty to Criminal Fraud Charges Over 737 Max Crashes, Faces Potential $687 Million Penalty

Boeing, the American aerospace giant, has agreed to plead guilty to criminal fraud charges related to two fatal crashes of its 737 Max jetliners in Indonesia and Ethiopia in 2018 and 2019. The crashes resulted in the deaths of 346 people. The Justice Department announced the agreement on July 8, stating that Boeing will plead guilty to a criminal fraud conspiracy charge for concealing information from regulators about the flight-control system implicated in the crashes.

The deal still requires approval from a federal judge and carries potential fines of up to $243.6 million, on top of the $243.6 million Boeing had already paid as part of a 2021 settlement it breached. In addition, Boeing will be required to invest at least $455 million over three years in its compliance and safety programs.

Boeing's deception of regulators led to the certification of the 737 Max for passenger service despite known issues with its flight-control system. The plane started carrying passengers in 2017 but was grounded for 20 months following the crashes, revealing a design flaw in its autopilot system.

The company has faced numerous safety and quality issues since then, including a door plug blowing out on a 737 Max flown by Alaska Air in January. About 37% of Boeing's revenue in 2023 came from federal contracts, which it would have lost if faced penalties for conducting business with the government.

The families of victims opposed the plea deal, arguing that it fails to recognize the gravity of Boeing's actions and that 346 people died due to its conspiracy. The Justice Department acknowledged their objections but stated that a judge can reject a plea deal if it is not in the public interest.



Confidence

91%

Doubts
  • It is unclear if all individuals involved in the fraud have been identified and will be charged.
  • The exact extent of Boeing's deception and its impact on the certification process is not fully clear.

Sources

81%

  • Unique Points
    • Boeing agrees to plead guilty to one charge of conspiracy to defraud the United States and potentially pay up to $487 million in fines.
    • Families of victims oppose the deal, their attorney says it fails to recognize 346 people died due to Boeing’s conspiracy.
    • Boeing is accused of defrauding the Federal Aviation Administration during the process of certifying the 737 Max to carry its first passengers.
    • The plane started service in 2017, but two fatal crashes led to a 20-month grounding of the jets and revealed a design flaw in its autopilot system.
    • Boeing has faced multiple safety and quality issues, including a door plug blowing out on a 737 Max flown by Alaska Air in January.
    • About 37% of Boeing’s revenue in 2023 came from federal contracts, which it would have lost if faced a penalty for conducting business with the government.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (30%)
    The article contains selective reporting as it only mentions the fine that families of victims wanted and the fine that Boeing will pay, without providing context about why those numbers differ. It also uses emotional manipulation by describing the families' desire for a public trial and their opposition to the deal, which could elicit an emotional response from readers.
    • The families are seeking a public trial on the charges.
    • The families of victims of two fatal crashes of the 737 Max oppose the deal, according to their attorney. “This sweetheart deal fails to recognize that because of Boeing’s conspiracy, 346 people died.”
  • Fallacies (85%)
    The author makes an appeal to authority by quoting Paul Cassell, a law professor representing victims' families, who expresses his opposition to the deal and calls it 'not in the public interest.' The author also uses inflammatory rhetoric by describing the fine as a 'fraction' of what victims' families wanted and stating that Boeing has faced 'a series of questions about the safety and quality of its planes.' However, no formal fallacies or dichotomous depictions were identified in this article.
    • ]The families are seeking a public trial on the charges.[/
  • Bias (95%)
    The author expresses disapproval towards the fine amount that Boeing will pay and quotes a lawyer representing victims' families who also expresses dissatisfaction with the deal. The author does not provide any evidence of bias against Boeing or favoritism towards the victims, but their language implies a sense of injustice.
    • But that fine is a fraction of the $24.8 billion that families of crash victims wanted the aircraft maker to pay.
      • The families are seeking a public trial on the charges.
      • Site Conflicts Of Interest (100%)
        None Found At Time Of Publication
      • Author Conflicts Of Interest (100%)
        None Found At Time Of Publication

      99%

      • Unique Points
        • Boeing has agreed to plead guilty to misleading U.S. safety regulators.
        • Boeing faces the risk of being barred or suspended from working with the US government due to its criminal record.
      • Accuracy
        No Contradictions at Time Of Publication
      • Deception (100%)
        None Found At Time Of Publication
      • Fallacies (95%)
        The article contains an appeal to authority in the form of a quote from the Department of Justice stating that Boeing had agreed to plead guilty to misleading U.S. safety regulators. However, no formal fallacies were found in the author's assertions.
        • The Department of Justice (DOJ) said Boeing had also agreed to pay a criminal fine of $243.6m.
      • 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 has agreed to plead guilty to defrauding the US government.
        • Boeing will invest at least $455 million in its compliance and safety programs.
        • An independent compliance monitor will be appointed to oversee Boeing for three years.
      • Accuracy
        • Boeing will pay a fine of $487.2 million ($243.6 million from the previous settlement and $243.6 million from the new plea deal).
      • Deception (100%)
        None Found At Time Of Publication
      • Fallacies (95%)
        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 agreed to plead guilty to a criminal fraud conspiracy charge in connection with two deadly crashes involving 737 MAX jetliners in Indonesia and Ethiopia in 2018 and 2019, resulting in the deaths of 346 people.
        • Boeing agreed to purchase Spirit AeroSystems for $4.7 billion and invest at least $455 million over three years to bolster safety and compliance programs.
      • Accuracy
        • Boeing faces the risk of being barred or suspended from working with the US government due to its criminal record.
      • Deception (100%)
        None Found At Time Of Publication
      • Fallacies (95%)
        The article contains an appeal to authority fallacy when it states that 'Federal prosecutors had offered Boeing the option of entering a guilty plea and paying a fine or going to trial on the felony criminal charge of conspiracy to defraud the Federal Aviation Administration over a software feature linked to the fatal crashes.' This statement implies that because federal prosecutors made this offer, it is evidence that Boeing engaged in such a conspiracy. However, an offer from prosecutors does not prove guilt.
        • Federal prosecutors had offered Boeing the option of entering a guilty plea and paying a fine or going to trial on the felony criminal charge of conspiracy to defraud the Federal Aviation Administration over a software feature linked to the fatal crashes.
      • 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

      94%

      • Unique Points
        • Boeing will plead guilty to a criminal fraud charge for concealing information from regulators about the 737 Max jetliners that led to two crashes killing 346 people
        • Boeing is accused of deceiving regulators about a flight-control system implicated in the crashes
      • Accuracy
        • Boeing will plead guilty to a criminal fraud charge for concealing information from regulators about the 737 Max jetliners
        • Boeing has agreed to plead guilty to misleading U.S. safety regulators.
        • Boeing faces the risk of being barred or suspended from working with the US government due to its criminal record.
      • Deception (90%)
        The article does not explicitly editorialise, but it heavily implies that Boeing's actions were deceitful and criminal. It states facts about the company's actions without linking to peer-reviewed studies or preprints, which is in line with our rules. The article also does not disclose sources beyond stating that the information comes from the Justice Department, so SourcesDisclosed is true.
        • Boeing will plead guilty to a criminal fraud charge stemming from two crashes of 737 Max jetliners that killed 346 people after the government determined the company violated an agreement that had protected it from prosecution for more than three years, the Justice Department said Sunday night.
      • Fallacies (85%)
        The article contains several instances of appeals to authority and inflammatory rhetoric. The author repeatedly refers to the Justice Department's allegations against Boeing without providing any context or evidence to support these claims. Additionally, the author quotes lawyers for families of those who died in the crashes making inflammatory statements about the plea deal. However, no formal logical fallacies were identified in the text.
        • ][The Justice Department] gave Boeing the choice last week of entering a guilty plea and paying a fine as part of its sentence or facing a trial on the felony criminal charge of conspiracy to defraud the United States.[/
        • ][Paul Cassell, a lawyer for some of the families] failed 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.[/
      • Bias (100%)
        None Found At Time Of Publication
      • Site Conflicts Of Interest (100%)
        None Found At Time Of Publication
      • Author Conflicts Of Interest (0%)
        None Found At Time Of Publication