The US Department of Justice has until July 7 to sue the aviation giant for breaches of agreements related to fatal crashes.
U.S. prosecutors are recommending that criminal charges be brought against Boeing after finding that the planemaker violated an agreement related to two fatal crashes, two people familiar with the matter told Reuters news agency.
The US Department of Justice (DOJ) must decide by July 7 whether to prosecute Boeing. The recommendation from prosecutors handling the case has not been previously reported.
In May, authorities determined that the company violated a 2021 agreement that protected Boeing from a criminal charge of conspiracy to commit fraud stemming from two fatal crashes in 2018 and 2019 involving the 737 MAX jet.
Under the 2021 settlement, the Justice Department agreed not to prosecute Boeing over allegations that it defrauded the Federal Aviation Administration as long as the company reviewed its compliance practices and filed regular reports. Boeing also agreed to pay $2.5 billion to settle the investigation.
Boeing declined to comment.
He previously said he “honored the terms” of the 2021 agreement, which had a three-year term and is known as a deferred prosecution agreement. Boeing told the Justice Department it disagrees with its determination that the company violated the agreement, Reuters reported this month.
A Justice Department spokesperson declined to comment.
The two sides are in discussions about a possible resolution to the Justice Department’s investigation and there is no guarantee that authorities will move forward with charges, the two sources said. The Justice Department’s internal deliberations remain ongoing and no final decisions have been made, they added.
The criminal charges would deepen the unfolding crisis at Boeing, which has faced intense scrutiny from U.S. prosecutors, regulators and lawmakers after a panel blew up one of its Alaska Airlines-operated jets mid-flight on Jan. 5, just two days earlier. before the 2021 agreement expires. .
The sources did not specify what criminal charges Justice Department officials are considering, but one of the people said they could go beyond the original 2021 fraud conspiracy charge.
Alternatively, instead of suing Boeing, the DOJ could extend the 2021 deal by a year or propose new, tougher terms, the sources said.
In addition to financial penalties, the most stringent agreements typically involve installing a third party to monitor the company’s compliance. The DOJ can also demand that the company admit its error by pleading guilty.
Boeing may be willing to pay a fine and agree to a monitor, but believes a guilty plea, which typically incurs additional business restrictions, could be very damaging, one of the sources said. Boeing derives significant revenue from U.S. government contracts, including the Defense Department, which could be harmed by a felony conviction, one of the sources said.
Relatives of victims of the two fatal 737 MAX crashes have long criticized the 2021 settlement, arguing that Justice Department officials should have sued the company and its executives.
At a Senate hearing in June, Chief Executive Dave Calhoun acknowledged the company’s safety deficiencies and apologized to families who lost loved ones.
Last week, families pressured prosecutors to request a fine of almost $25 billion against the plane manufacturer and move forward with criminal proceedings.
This story originally appeared on Aljazeera.com read the full story
