Boeing pays U.S. $2.5B to resolve Max fraud conspiracy charges - InvestingChannel

Boeing pays U.S. $2.5B to resolve Max fraud conspiracy charges

Boeing has entered into an agreement with the Department of Justice to resolve a criminal charge related to a conspiracy to defraud the Federal Aviation Administration’s Aircraft Evaluation Group in connection with the FAA AEG’s evaluation of Boeing’s 737 MAX airplane, the Justice Department said in a statement. Boeing entered into a deferred prosecution agreement in connection with a criminal information filed today in the Northern District of Texas. The criminal information charges the company with one count of conspiracy to defraud the United States. Under the terms of the DPA, Boeing will pay a total criminal monetary amount of over $2.5B, composed of a criminal monetary penalty of $243.6M, compensation payments to Boeing’s 737 MAX airline customers of $1.77B, and the establishment of a $500M crash-victim beneficiaries fund to compensate the heirs, relatives, and legal beneficiaries of the 346 passengers who died in the Boeing 737 MAX crashes of Lion Air Flight 610 and Ethiopian Airlines Flight 302. “The misleading statements, half-truths, and omissions communicated by Boeing employees to the FAA impeded the government’s ability to ensure the safety of the flying public,” said U.S. Attorney Erin Nealy Cox for the Northern District of Texas.