Boeing Accepts Plea Deal to Avoid Criminal Trial Over 737 Max Crashes, No Immunity for Other Incidents (Connecting the Dots: Boeing, DOJ, FAA, FBI, Economic Club of Washington, Smithsonian Institution & Soros Fundong, All Networking)
Federal
prosecutors gave Boeing the choice last week of entering a guilty plea and
paying a fine.
The
Epoch Times
By
Jacob Burg 7/8/2024 Updated: 7/8/2024
Boeing
will plead guilty to a criminal charge of defrauding the U.S. government over
the deadly 2018 and 2019 737 Max crashes that killed 346 people, the U.S.
Department of Justice (DOJ) said in a July 7 filing.
The
DOJ first charged
Boeing with defrauding the U.S. government on Jan. 7, 2021, after two crashes
of its 737 Max 8 airplane. In a deferred prosecution agreement, the DOJ gave
the company three years, until Jan. 7, 2024, to comply with new safety
obligations in order to avoid charges.
On
Jan. 5, just two days before the deferred prosecution agreement would have
expired, an Alaska Airlines door panel on a Boeing 737 Max 9 blew off midair.
The DOJ ruled on May 14
that the incident put Boeing in violation the 2021 deal and said it would
announce by July 7 how to proceed. Boeing denied breaching the agreement.
Prosecutors
gave Boeing the choice last week to plead guilty and pay a fine or face a trial
on felony charges of defrauding the U.S. government and the Federal
Aviation Administration (FAA) by hiding the
Maneuvering Characteristics Augmentation System (MCAS) from federal regulators
before the 737 Max crashes.
A
federal judge must approve the plea deal for it to take effect. The deal calls
for Boeing to pay an additional $243.6 million fine, the same penalty that it
paid in 2021 as part of the original prosecution agreement. At that time,
Boeing paid a total of $2.5 billion to avoid criminal prosecution, which
included $500 million for the families of the 737 Max crash victims.
Boeing
will also have to invest at least $455 million in safety and compliance
programs and undergo three years of independent monitoring of its safety and
quality control.
No
Immunity for Other Incidents
The
new plea deal will shield Boeing only from any wrongdoing before the 737 Max
crashes in 2018 and 2019, but it does not give it immunity for any other
incidents, including the Alaska Airlines incident, a DOJ official said.
The
plea deal covers only the corporation, not any current or former Boeing
employees. Boeing, in a statement, said it had reached the deal with the DOJ
but had no further comment.
In
its court filing on July 7, the DOJ said it expected to submit the written plea
agreement to a Texas U.S. District Court by July 19. However, lawyers for some
of the families of the 737 Max crash victims have said they will urge the judge
to reject the plea agreement.
All
346 passengers and crew members of Lion Air Flight 610 in 2018 and Ethiopian
Airlines Flight 302 in 2019 perished after Boeing’s then-unknown flight control
software, the MCAS, caused both planes to stall midair, leading them to crash
into the ground.
“This
sweetheart deal fails to recognize that because of Boeing’s conspiracy, 346
people died. Through crafty lawyering between Boeing and DOJ, the deadly
consequences of Boeing’s crime are being hidden,” Paul Cassell, a lawyer who
represents some of the families in the criminal case against Boeing, said.
Boeing’s
original charges of defrauding the U.S. government came after the DOJ accused
the company of hiding its MCAS flight control software from the FAA, airlines,
and pilots. This led to the two deadly crashes, which occurred less than five
months apart on two newly manufactured 737 Max 8 planes.
The
judge overseeing the case from the outset, U.S. District Judge Reed O‘Connor,
has criticized the company’s actions as “egregious criminal conduct.” Judge
O’Connor could accept the DOJ’s plea deal and proposed sentencing, or he could
reject the agreement. A rejection would likely require new negotiations between
the DOJ and Boeing.
737
Max Flight Control Software
Boeing
developed
the 737 Max with larger engines that are higher off the ground and further
forward on the wings, causing the plane’s nose to push up during ascent.
To
counteract this effect, Boeing designed the software to automatically engage
and lower the nose if an angle-of-attack sensor tells the computer that the
plane is at the wrong ascent angle.
They
also initially developed the 737 Max to consider data from a single
angle-of-attack sensor at a time. These sensors tell a plane’s computer what
angle it is at during flight to prevent midair stalls.
Planes
previously (and since) have utilized multiple sensors, but the FAA
blamed the 2018 and 2019 crashes on Boeing’s reliance on a single
sensor for its MCAS.
The
DOJ blamed Boeing for withholding information on the flight control system,
which was absent on older 737 jets, from FAA regulators, airlines, and pilots.
During each of the two crashes, the MCAS was activated because a faulty
angle-of-attack sensor on the plane mistakenly detected that the nose was at an
unsafe angle.
In
both of the cases, the computer pitched the nose down automatically, and pilots
on both flights were unable to disable the action in time, causing catastrophic
stalls.
Boeing
blamed two of its flight technical pilots for withholding information on the
MCAS.
In
the Jan. 7, 2021, deferred prosecution deal, in order to have the criminal
charge dismissed in court, Boeing had to pay a $2.5 billion criminal penalty,
admit to wrongdoing, and refrain from further incidents until Jan. 7, 2024. The
FAA also grounded the 737 Max for 20 months and forced Boeing to retool the
MCAS software and reduce its control over the airplane. The planes have since
logged thousands of safe flights, and orders on the new planes increased to
nearly 1,000 in 2023.
Two
days before the 2021 agreement was set to expire, the Alaska Airlines flight
incident occurred, thrusting Boeing’s 737 Max back into public and regulatory
scrutiny.
The
FAA gave Boeing 90 days in February to submit a comprehensive safety plan, and
the FBI
told passengers of the Alaska 737 Max that they might be victims of a crime.
Government
Contract Issues
Even
if Boeing avoids a criminal trial, some legal experts have suggested that a
guilty plea in a criminal conviction could jeopardize Boeing’s status as a
federal contractor; 37 percent of its revenue in 2023 came from U.S. government
contracts. Most of that came from defense work, including military sales
for other countries arranged through Washington.
The
plea deal did not address that question, leaving it to each government agency
to determine whether to grant Boeing contracts.
Previously,
the Air Force cited a “compelling national interest” in allowing Boeing to
continue competing for contracts after the company paid a $615 million fine in
2006 to settle criminal and civil charges for stealing information from a rival
to win a space-launch contract.
Based
in Arlington, Virginia, Boeing has 170,000 employees nationwide. It recently
developed a manned space capsule for NASA.
Starliner,
which successfully launched from the Kennedy Space Center on June 5, is
currently delayed
in its return to Earth. This leaves the two astronauts aboard the International
Space Station while Boeing and NASA officials conduct safety testing on the
spacecraft, which experienced multiple leaks in its propulsion system before
and after takeoff.
Some
of the company’s critics have expressed concern over incapacitating Boeing,
which is a key U.S. defense contractor.
“Boeing
needs to succeed for the sake of the jobs it provides, for the sake of local
economies it supports, for the sake of the American traveling public, for the
sake of our military,” Sen. Richard Blumenthal (D-Conn.) said during a June 18
Senate hearing that included testimony from current Boeing CEO Dave Calhoun.
A
company whistleblower stepped
forward hours before the hearing, alleging that defective parts
could be going into new 737 Max jets.
At
the hearing, Mr. Calhoun defended Boeing’s safety culture after apologizing to
the families of the 737 Max crash victims.
“I
would like to apologize on behalf of all of our Boeing associates spread
throughout the world, past and present, for your loss,” Mr. Calhoun said.
The
family members have pushed for a criminal trial to potentially reveal what
Boeing insiders could have known about the MCAS software and any efforts to
deceive the FAA about its implementation in the 737 Max. They also want the DOJ
to prosecute top Boeing officials in addition to the company itself.
Ike
Riffel of Redding, California, who lost his sons Melvin and Bennett in the
Ethiopian Airlines crash, said that having Boeing pay fines “doesn’t seem to
make any change.”
“When
people start going to prison, that’s when you are going to see a change,” he
said.
The
Associated Press contributed to this report.
Connecting
the Dots:
Edmund P. Giambastiani Jr. is a
director at the Boeing Company and a lifetime director for
the Atlantic Council of the United States (think tank).
Stanley O. Roth is a VP for
the Boeing Company and was a director at the Atlantic
Council of the United States (think tank).
James L. Jones Jr. was a
director at the Boeing Company and is a director at the Atlantic
Council of the United States (think tank).
Rozanne L. Ridgway was a
director at the Boeing Company and a co-chair for
the Atlantic Council of the United States (think tank).
Stanley Ebner was the SVP
at the Boeing Company and is a
lifetime director for the Atlantic Council of the United States (think
tank).
Open Society Foundations was a funder
for the Atlantic Council of the United States (think tank).
George Soros is the founder
& chairman for the Open Society Foundations and was the
chairman for the Foundation to Promote Open Society.
Foundation to Promote Open Society was a funder
for the Brookings Institution (think tank).
Vernon E. Jordan
Jr. is an honorary trustee at the Brookings Institution
(think tank), Valerie B. Jarrett’s great uncle, a senior
counsel for Akin, Gump, Strauss, Hauer & Feld, LLP, married
to Ann Dibble Jordan and was the president of the Economic
Club of Washington.
Akin,
Gump, Strauss, Hauer & Feld, LLP is the lobby firm for the Boeing
Company.
Ann Dibble Jordan
is married to Vernon E. Jordan Jr. and an honorary trustee at
the Brookings Institution (think tank).
Foundation to Promote Open Society was a funder for
the Brookings Institution (think tank).
George Soros was the chairman for
the Foundation to Promote Open Society.
David M.
Rubenstein is the co-chairman for the Brookings Institution
(think tank), the president of the Economic Club of Washington,
a regent at the Smithsonian Institution and
spent Thanksgiving with Joe Biden.
Joseph R. Biden Jr. is
a regent at the Smithsonian Institution, the vice president for
the Barack Obama Administration and is the president
for the Joe Biden Administration.
James A. Baker III
was a fellow at the Brookings Institution (think tank) and the
general counsel for the Federal Bureau of Investigation (FBI).
Teresa Heinz
Kerry is an honorary trustee at the Brookings Institution
(think tank) and married to John F. Kerry.
Cameron F. Kerry is
a fellow at the Brookings Institution (think tank), John F.
Kerry’s brother and a senior counsel at Sidley Austin LLP.
Kathryn B.
Thomson was a partner at Sidley Austin LLP and is the
chief counsel for the Federal Aviation Administration (FAA).
Michelle Obama was
a lawyer at Sidley Austin LLP.
Barack Obama was
an intern at Sidley Austin LLP and Madelyn Payne
Dunham was his maternal grandmother.
Madelyn Payne
Dunham was Barack Obama’s maternal grandmother and an
aircraft inspector for the Boeing Company.
Barbara G. Fast was
a VP at the Boeing Company and a VP for the CGI Group
Inc.
CGI Group Inc. was
the Obamacare contractor that developed Healthcare.gov
web site.
Obamacare is Barack
Obama’s signature policy initiative.
Donna S. Morea was
the EVP for the CGI Group Inc. and a trustee at the Committee
for Economic Development.
Foundation to Promote Open Society was a funder
for the Committee for Economic Development.
George Soros was the chairman
for the Foundation to Promote Open Society and is the founder
& chairman for the Open Society Foundations.
Open Society Foundations was a funder for
the Atlantic Council of the United States (think tank).
Edmund P.
Giambastiani Jr. is a lifetime director for the Atlantic
Council of the United States (think tank) and a director at the Boeing
Company.
Stanley O. Roth was
a director at the Atlantic Council of the United States (think tank) and
is a VP for the Boeing Company.
James L. Jones
Jr. is a director at the Atlantic Council of the United States
(think tank) and was a director at the Boeing Company.
Rozanne L. Ridgway was
a co-chair for the Atlantic Council of the United States (think tank) and
a director at the Boeing Company.
Stanley Ebner is
a lifetime director for the Atlantic Council of the United States
(think tank) and was the SVP at the Boeing Company.
Robert G.
Liberatore was a director at the Atlantic Council of the
United States (think tank) and is a director at the Economic Club
of Washington.
Open Society Foundations was a funder for the Atlantic Council of the
United States (think tank).
George Soros is the founder & chairman for the Open
Society Foundations.
Frances
Fragos Townsend is a director at the Atlantic Council of the
United States (think tank) and was a counsel to the attorney general,
assistant U.S. attorney for the Southern District for the U.S.
Department of Justice (DOJ)
Federal
Bureau of Investigation (FBI) is a division of the U.S.
Department of Justice (DOJ).
William H. Webster
was a director at the Federal Bureau of Investigation (FBI), a
director at the Central Intelligence Agency (CIA) and is a director
at the Atlantic Council of the United States (think tank).
Open Society Foundations was a funder for
the Atlantic Council of the United States (think tank).
George Soros is the founder & chairman
for the Open Society Foundations.
James A. Baker III is
an honorary director at the Atlantic Council of the United States
(think tank) and was the general counsel for the Federal Bureau of
Investigation (FBI).
Edmund P.
Giambastiani Jr. is a lifetime director for the Atlantic
Council of the United States (think tank) and a director at the Boeing
Company.
Stanley O. Roth is
a VP for the Boeing Company and was a director at the Atlantic
Council of the United States (think tank).
James L. Jones
Jr. was a director at the Boeing Company and is a
director at the Atlantic Council of the United States (think tank).
Rozanne L. Ridgway was
a director at the Boeing Company and a co-chair for
the Atlantic Council of the United States (think tank).
Stanley Ebner was
the SVP at the Boeing Company and is a lifetime director for
the Atlantic Council of the United States (think tank).
Open Society Foundations was a funder for
the Atlantic Council of the United States (think tank).
George Soros is the founder & chairman
for the Open Society Foundations.
Resources:
Past Research
Blumenthal:
Time to bring in DOJ
SUNDAY,
MAY 25, 2014
https://thesteadydrip.blogspot.com/2014/05/blumenthal-time-to-bring-in-doj.html
Rep.
Ken Buck on D.C.’s Swamp: Politicians Are ‘Bought with Taxpayer Dollars’
(Researchers Note: Follow the Money!)
(Past Research on the U.S. Department of Justice (DOJ))
SATURDAY,
APRIL 15, 2017
https://thesteadydrip.blogspot.com/2017/04/rep-ken-buck-on-dcs-swamp-politicians.html
NTSB:
Video Footage of Work on Boeing Jet's Door Plug Erased (Connecting the Dots:
Boeing, FAA & Soros Funding, All Networking) (Past
Research on Boeing)
WEDNESDAY,
MARCH 13, 2024
https://thesteadydrip.blogspot.com/2024/03/ntsb-video-footage-of-work-on-boeing.html
FBI
lawyer James Baker testifies he's 'not out to get’ Sussmann: 'This is not my
investigation, it's yours' FBI lawyer James Baker testifies he's 'not out to
get’ Sussmann: 'This is not my investigation, it's yours'(Connecting the Dots:
Baker, Clinton, Soros, FBI, CIA, Atlantic Council, Clinton Foundation & the
Brookings Institution) (Past Research on the FBI)
SATURDAY,
JUNE 11, 2022
https://thesteadydrip.blogspot.com/2022/06/fbi-lawyer-james-baker-testifies-hes.html
NTSB:
Video Footage of Work on Boeing Jet's Door Plug Erased (Connecting the Dots:
Boeing, FAA & Soros Funding, All Networking) (Past
Research on Boeing)
WEDNESDAY,
MARCH 13, 2024
https://thesteadydrip.blogspot.com/2024/03/ntsb-video-footage-of-work-on-boeing.html
Boehner:
There Is a Crisis In Relations Between Cops and African-Americans (Past Research on the Economic Club of Washington)
SUNDAY,
MAY 3, 2015
https://thesteadydrip.blogspot.com/2015/05/boehner-there-is-crisis-in-relations.html
Smithsonian
Admits to Destruction of Thousands of Giant Human Skeletons in Early 1900′s (Past Research on the Smithsonian Institution)
WEDNESDAY,
DECEMBER 10, 2014
https://thesteadydrip.blogspot.com/2014/12/smithsonian-admits-to-destruction-of.html
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