Boeing Agrees to Plead Guilty to Criminal Fraud Charge Over 737 Max Crashes, Faces $698.6 Million Penalty

Seattle, Washington United States of America
Boeing agrees to plead guilty to criminal fraud charge over 737 Max crashes.
Boeing opted for a guilty plea to avoid lengthy legal proceedings instead of facing a trial on the felony criminal charge.
Ethiopian Airlines Flight ET302 followed suit on March 10, 2019, claiming another 157 lives.
FAA alleges Boeing committed conspiracy to defraud the government by misleading them about a flight-control system implicated in the crashes, known as MCAS.
Lion Air Flight JT610 crashed on October 29, 2018, killing all 189 passengers and crew.
The system was not disclosed properly during the regulatory approval process.
Two fatal crashes of 737 Max jetliners killed 346 people.
Boeing Agrees to Plead Guilty to Criminal Fraud Charge Over 737 Max Crashes, Faces $698.6 Million Penalty

Boeing, the American aerospace giant, has agreed to plead guilty to a criminal fraud charge stemming from two fatal crashes of its 737 Max jetliners that killed 346 people. The company faces an additional $243.6 million fine and at least $455 million investment in compliance and safety programs as part of the plea deal.

The Federal Aviation Administration (FAA) regulators allege Boeing committed conspiracy to defraud the government by misleading them about a flight-control system implicated in the crashes. The system, known as MCAS, was not disclosed properly during the regulatory approval process.

Boeing's deception came to light after two tragic incidents: Lion Air Flight JT610 crashed into the Java Sea on October 29, 2018, killing all 189 passengers and crew. Ethiopian Airlines Flight ET302 followed suit on March 10, 2019, claiming another 157 lives.

The Justice Department gave Boeing the choice last week of entering a guilty plea and paying a fine or facing a trial on the felony criminal charge. The company opted for the former to avoid lengthy legal proceedings.

Boeing's agreement to plead guilty marks an end to its three-year immunity from prosecution under the 2021 deal, which aimed at reforming Boeing following these devastating crashes.

The families of the victims have expressed disappointment with the plea deal, viewing it as a 'sweetheart deal' that does not hold Boeing fully accountable for their losses. The company will still need to face civil lawsuits and potential regulatory actions.



Confidence

90%

Doubts
  • Are there any potential inaccuracies in the reporting of Boeing's cooperation with the investigation?
  • Could there be any undisclosed information or evidence that might change the outcome of this case?
  • Is it possible that additional charges or penalties could be imposed on Boeing in the future?

Sources

98%

  • Unique Points
    • Boeing agreed to plead guilty to conspiring to defraud the government in a case linked to crashes of its 737 Max jets in Indonesia and Ethiopia that killed 346 people
    • Two Boeing pilots concealed key information from the Federal Aviation Administration about a new automated control system on the Max
    • The automated system was implicated in both crashes, causing uncontrollable dives
  • Accuracy
    • Boeing will pay an additional $487.2 million in penalties, agree to oversight by an independent monitor, spend at least $455 million to strengthen compliance and safety programs and be placed on supervised probation for roughly three years
    • Boeing violated terms of a 2021 agreement by failing to create agreed-upon compliance and ethics programs
  • 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

96%

  • Unique Points
    • Boeing will plead guilty to a criminal fraud charge
    • The fraud charge is tied to the 737 Max crashes
  • Accuracy
    • Boeing faces an additional $487.2 million in penalties
    • Boeing agreed to pay an additional $455 million in penalties and spend at least $455 million to strengthen compliance and safety programs
  • 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

76%

  • Unique Points
    • Boeing will plead guilty to a criminal fraud charge stemming from two crashes of 737 Max jetliners that killed 346 people.
    • The company faces an additional $243.6 million fine, an independent monitor overseeing safety and quality procedures for three years, and at least $455 million investment in compliance and safety programs.
    • Federal prosecutors allege Boeing committed conspiracy to defraud the government by misleading regulators about a flight-control system implicated in the crashes.
  • Accuracy
    • Boeing is an important contractor of the Defense Department and NASA, with 37% of its revenue last year coming from U.S. government contracts.
  • Deception (5%)
    The article contains selective reporting as it only reports details that support the author's position of Boeing's guilty plea and does not mention any potential exonerating information. The article also uses emotional manipulation by describing the deaths of 346 people in a sensationalist manner to elicit an emotional response from readers.
    • Boeing will plead guilty to a criminal fraud charge stemming from two crashes of 737 Max jetliners that killed 346 people
    • Relatives of the Indonesia and Ethiopia crash victims have pushed for a criminal trial that might illuminate what people inside Boeing knew about deceiving the FAA.
  • 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

70%

  • Unique Points
    • Boeing has agreed to plead guilty to a criminal fraud conspiracy charge after the US found the company violated a deal meant to reform it after two fatal crashes by its 737 Max planes that killed 346 passengers and crew.
    • Boeing will plead guilty to a criminal fraud charge
    • Boeing will pay a $243.6 million fine as part of the plea deal
  • Accuracy
    • Boeing agreed to plead guilty to conspiring to defraud the government in a case linked to crashes of its 737 Max jets in Indonesia and Ethiopia that killed 346 people
  • Deception (30%)
    The article contains selective reporting as it only mentions the fine Boeing will pay and does not mention the full $2.5bn settlement. The author also uses emotional manipulation by quoting family members' criticisms of the deal without providing any counterargument or context.
    • The memory of 346 innocents killed by Boeing demands more justice than this.
    • > It is also one of the world’s two biggest manufacturers of commercial jets.
  • Fallacies (80%)
    The author makes an appeal to authority by quoting the Department of Justice and senior staff at DoJ in support of their argument that Boeing should be prosecuted. However, they also quote family members and lawyers who disagree with this assessment. No formal fallacies were identified.
    • ] The families of the people who died on the flights five years ago have criticised it as a ‘sweetheart deal’ that would allow Boeing to avoid full responsibility for the deaths.[
    • Senior staff at DoJ recommended in favour of prosecution, CBS News reported.
    • Lawyers for family members said the DoJ was worried it did not have a strong case against the firm.
  • Bias (80%)
    The author expresses criticism from the families of the victims towards the $243.6m fine as a 'sweetheart deal' that allows Boeing to avoid full responsibility for the deaths. This implies a bias against Boeing and in favor of the victims.
    • Instead of holding individuals accountable, they're just basically giving them another get out of jail free card.
      • the families of the people who died on the flights five years ago have criticised it as a 'sweetheart deal''
      • Site Conflicts Of Interest (100%)
        None Found At Time Of Publication
      • Author Conflicts Of Interest (100%)
        None Found At Time Of Publication