Will Boeing Face Criminal Prosecution?

https://thehill.com/regulation/court-battles/4665064-doj-boeing-violated-settlement/

The Department of Justice (DOJ) told a federal judge Tuesday that Boeing violated a settlement that let it escape criminal prosecution following the two crashes of 737 Max aircraft a few years ago.

The DOJ now has to figure out if it will file charges against the aviation giant, according to The Associated Press. According to the department, prosecutors will let the court know of their plans by early July.

It said Boeing had breached the deal to evade prosecution “by failing to design, implement, and enforce a compliance and ethics program to prevent and detect violations of the U.S. fraud laws throughout its operations.”

The finding that Boeing violated the terms of the settlement by not making the changes could result in the company being prosecuted “for any federal criminal violation of which the United States has knowledge,” the DOJ said.

In January 2021, the DOJ announced that Boeing signed the deferred prosecution agreement “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.”

US Attorney Erin Nealy Cox said then that “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.”

The nonprofit Foundation for Aviation Safety, which is led by former Boeing employee Ed Pierson, recently accused Boeing of violating the deferred prosecution agreement. Pierson alleged in a December 2023 court filing that “Boeing has deliberately provided false, incomplete, and misleading information to the FAA, the flying public, airline customers, regulators, and investors.”

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Boeing will probably start crying that, if they are prosecuted “bazillions of American jobs will be destroyed”. It seems that the only time “JCs” think of their employees as anything other than a cost to be minimized is when they hold their employees hostage to escape the law, or market realities.

Steve

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The employees’ jobs will be fine. Multiple current AND former management personnel will face going to jail because they did not follow the agreement with the DOJ.

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The narrative for the last 40 years has been “nothing can happen without the JCs. Everything begins and ends with the JCs” Therefore, locking up the JCs closes the company, and “kills bazillions of jobs”.

Steve

Almost. The MONEY ends at the JCs–they take it. Everything else is a lie.

Like the following: Enron, WorldCom, Rite-Aid, Qwest, Cendant, Health South, Tyco, Computer Associates and many others.

Of those cases, the ones I am familiar with were all 20+ years ago. “JCs” aren’t prosecuted anymore. Recall the conversation Jamie Dimon had with a Senator some years ago. He said words to the effect “go ahead and hit us with a fine, I don’t care, fines are nothing but a cost of doing business”. Because, all those tens of millions paid, in each of several fines, are the shareholder’s money. There are never any personal consequences for Dimon, for running a criminal enterprise. Did any of the big dogs at Wells Fargo suffer personally, for the nonsense that went on there?

Steve

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And let’s not forget 2008 real estate implosion due to sub-prime loans.No JC went to jail though the JCs heading Bear Stearns & Lehman Bros lost their jobs due to the collapse of their corporations they headed.

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It got better. I remember Hank Paulson insisting, not only there be no consequences for the honchos who had run their banks into trouble, he insisted that money be thrown at banks that didn’t need it, so there would not be any “stigma” about taking a government bailout.

Steve

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Not true! Abacus: Small Enough to Jail | FRONTLINE
But it absurd that this guy did, and that nobody who actually mattered did.

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That is so NOT true!

The FT counts 47 bankers jailed.

Half of them were from just one country - surely you can guess the country, must have been the one which started the crisis? Oh, wait…

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In the case of Boeing, it would also “put national security at great risk”.

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The convicted were mostly from those Communistical countries, not Shiny-land.

The US, ground zero for the financial crisis, has jailed just one banker for issues relating to the crisis. Former Credit Suisse trader Kareem Serageldin was sentenced to thirty months in prison for artificially inflating the price of subprime mortgages, a financial product at the very heart of Wall Street’s unravelling.

The one USian was from a foreign bank, with a foreign sounding name. Not a “red blooded USian”.

Steve

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Why would anyone go to prison for a massive fraud?

Note women executives seem to have a harder time with the law. Interesting, how that works.

Another “rogue underling” takes the fall.

Steve