Corporate Crime of the Century? Boeing Faces Fraud Trial Over Deadly 737 MAX Crashes!

More Articles

Tejaswini Deshmukh
Tejaswini Deshmukh
Tejaswini Deshmukh is the contributing editor of RegTech Times, specializing in defense, regulations and technologies. She analyzes military innovations, cybersecurity threats, and geopolitical risks shaping national security. With a Master’s from Pune University, she closely tracks defense policies, sanctions, and enforcement actions. She is also a Certified Sanctions Screening Expert. Her work highlights regulatory challenges in defense technology and global security frameworks. Tejaswini provides sharp insights into emerging threats and compliance in the defense sector.

Two terrible airplane crashes involving Boeing’s 737 MAX jets caused the deaths of hundreds of people. These crashes happened in Indonesia and Ethiopia between 2018 and 2019. After these disasters, it was found that Boeing had misled the Federal Aviation Administration (FAA) about a key safety system on these planes. As a result, Boeing now faces a criminal fraud trial that stems from this deadly misconduct.

A lawyer representing some of the victims’ families says that the U.S. Justice Department should not allow Boeing to avoid going to trial. The lawyer believes that letting Boeing off with a deal instead of standing trial would be very unfair. According to him, this case is one of the deadliest corporate crimes in U.S. history. He argues that Boeing must be held fully responsible in court, not just allowed to settle quietly.

The Deal on the Table

The Justice Department recently suggested a deal with Boeing. Under this proposal, Boeing would avoid a trial and not be officially found guilty. Boeing would instead agree to pay a large fine and follow certain rules. But the lawyer for the victims’ families warns that this deal is not good enough.

This proposed agreement means Boeing would not be called a convicted felon, which means they wouldn’t have an official criminal record. The lawyer says this is a problem because it lets Boeing escape the full consequences of their actions. Instead of having an independent monitor watch Boeing closely to make sure they follow the rules, the company would get to hire its own consultant. This means Boeing would essentially be policing itself.

The Justice Department said that families affected by the crashes have a chance to say if they disagree with the deal. They have until a certain date to submit their objections in writing.

The Past Confession and New Fines

Back in 2021, Boeing already agreed to plead guilty to a criminal fraud conspiracy charge linked to the crashes. At that time, Boeing promised to pay a fine of nearly $500 million. The lawyer points out that Boeing’s current CEO even signed that agreement, which admitted the company’s guilt.

Because Boeing has already admitted to these crimes, the lawyer argues there is almost no chance that Boeing would be found innocent in a real trial. This means a full trial would only prove what is already known and ensure justice is done.

Now, the Justice Department wants Boeing to pay an additional $444.5 million. This extra money would go into a fund to support the families of the crash victims. This would be on top of the half a billion dollars Boeing already paid.

Meanwhile, the FAA has been watching Boeing’s planes very carefully. Since early 2024, after another emergency happened on a different 737 MAX plane missing important bolts, the FAA has limited how many of these planes Boeing can build each month. This shows that the problems with the 737 MAX jets are still being taken seriously by regulators.

- Advertisement -spot_imgspot_img

Latest

error: Content is protected !!