$2.5 BIL FINE: Boeing Charged with Criminal Conspiracy over 737 Max Fraud
Posted on 01/08/2021
The recertified Boeing 737 Max completed its first U.S. commercial flight in December 2020. The Boeing 737 Max was banned in March 2019 after the Lion Air Flight 610 crash in October 2018 in Indonesia that killed 189 people. This tragic accident was followed five months later by the Ethiopian Airlines Flight 302 crash that caused the death of all 157 people aboard. The Boeing Company has entered into an agreement with the U.S. Department of Justice to resolve a criminal charge related to a conspiracy to defraud the Federal Aviation Administration’s Aircraft Evaluation Group (FAA AEG) in connection with the FAA AEG’s evaluation of Boeing’s 737 MAX airplane.
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As part of the settlement, Boeing must make compensation payments of $1.77 billion to 737 Max airline customers.
Boeing will pay more than $2.5 billion to settle federal criminal fraud charges that it deceived the FAA in connection with the agency s evaluation of the 737 Max aircraft.
Travel advisors must decide whether to handle bookings on Max-operated flights differently than they handle bookings for all other flights Continue Reading
The aerospace giant will pay a criminal fine of $243.6 million, make compensation payments to 737 Max airline customers of $1.77 billion and establish a $500 million fund for relatives and heirs of the 346 people who died in the 2018 and 2019 Max crashes of Lion Air Flight 610 and Ethiopian Airlines Flight 302.
Boeing to pay more than $2.5B fines in conspiracy case
VIDEO: Boeing to pay more than $2.5B fines in conspiracy case By Ray Rivera | January 7, 2021 at 4:21 PM EST - Updated January 7 at 6:32 PM
CHARLESTON, S.C. (WCSC) - Boeing has agreed to pay more than $2.5 billion in connection to a conspiracy to defraud the FAA related to the evaluation of the companyâs 737 MAX airplane, according to officials with the United States Department of Justice.
Government officials said Boeing entered into a deferred prosecution agreement on Thursday in the Northern District of Texas and was charged with one count of conspiracy to defraud the United States.
Boeing charged with 737 MAX fraud conspiracy, will pay $2.5 billion in penalties
Boeing entered into a deferred prosecution agreement with the Department of Justice in connection with criminal information filed Thursday, Jan. 7 in Texas. Author: KING 5 Staff Updated: 12:34 AM EST January 8, 2021
The Boeing Company will pay $2.5 billion to resolve a criminal charge related to conspiracy to defraud the FAA s Aircraft Evaluation Group as well as compensate MAX airline customers and establish a crash-victim beneficiaries fund.
Boeing entered into a deferred prosecution agreement with the Department of Justice in connection with criminal information filed Thursday, Jan. 7, in Texas.
The criminal information charges the company with one count of conspiracy to defraud the United States, which was brought to light amid the investigations into the MAX 737 following two deadly crashes that killed 346 people, according to the Department of Justice.
By David Kaminski-Morrow2020-12-19T10:34:00+00:00
US Senate committee investigators believe Boeing and the US FAA tried to re-affirm controversial assumptions over pilot response times during 737 Max recertification, by pre-determining the outcome of tests on crew reactions to a runaway stabiliser.
The Senate committee on commerce, science and transportation has found that Boeing “inappropriately coached” test pilots while conducting simulator tests during recertification of the Max, after two fatal accidents involving the type.
Both accidents were linked to the MCAS software system which erroneously and repeatedly trimmed the horizontal stabiliser to push the aircraft into a nose-down attitude.
Source: Boeing