U.S. prosecutors recommend Justice Department criminally charge Boeing as deadline looms

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The Justice Department must decide by July 7 whether to prosecute Boeing after prosecutors found the plane maker violated a settlement related to two fatal crashes, two people familiar with the matter told Reuters

after finding the plane maker violated a settlement related to two fatal crashes, two people familiar with the matter told Reuters.

Under the 2021 deal, the Justice Department agreed not to prosecute Boeing over allegations it defrauded the Federal Aviation Administration so long as the company overhauled its compliance practices and submitted regular reports. Boeing also agreed to pay $2.5 billion to settle the investigation. The sources did not specify what criminal charges Justice Department officials are considering, but one of the people said they could extend beyond the original 2021 fraud conspiracy charge.

Boeing may be willing to pay a penalty and agree to a monitor, but believes a guilty plea, which typically incurs additional business restrictions, could be too damaging, said one of the sources. Boeing derives significant revenue from contracts with the U.S. government, including the Defense Department, which could be jeopardized by a felony conviction, one of the sources said.

 

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