Boeing should face criminal charges, prosecutors tell Justice Department: Report

Justice Department prosecutors are recommending criminal charges against Boeing, Reuters reported on Sunday, alleging it violated a settlement in connection with two fatal crashes.

The department faces a July 7 deadline to determine whether to charge the airline giant.

The settlement for 2021 was reached after two fatal accidents related to defects in the Boeing 737 Max 8 plane, which killed almost 350 people in 2018 and 2019. The agreement shielded the company from criminal liability for fraud in exchange for a promise to review the system’s compliance, in addition to a $2.5 billion penalty.

Last month, the department found that Boeing had breached a contract that the company disputed. According to Reuters, Boeing and the Justice Department are in negotiations on next steps, and a final decision on fees has not yet been made.

Justice Department attorney Glenn Leon said in court last month that Boeing breached the contract “because it failed to design, implement and enforce a compliance and ethics program to prevent and detect violations of U.S. fraud laws throughout its operations.”

Boeing told The Hill in a statement last month that it believed it was still in compliance with the agreement.

“We believe we have complied with the terms of this agreement and look forward to responding to the Department on this matter,” the company said.

Last week, during a hearing before the Homeland Security Committee, senators questioned Boeing CEO Dave Calhoun about the settlement and other security issues with the airline. In his testimony, Calhoun apologized to the families of those killed in both crashes.

“I want to personally apologize on behalf of everyone at Boeing. We are very sorry for your losses. There is nothing more important than the safety of those boarding our aircraft. Every day we strive to honor those who lost their lives with an unwavering commitment to safety and quality,” Calhoun said.

The next day, a group of victims’ families released a letter calling on the Justice Department to pursue “aggressive criminal prosecution” against Boeing.

“Because Boeing’s crime is the deadliest corporate crime in U.S. history, a maximum fine of more than $24 billion is legally justified and clearly appropriate, although it may be partially suspended if funds that would otherwise be paid are used for adequate quality control and safety measures,” attorney Paul Cassell wrote on behalf of some of the victims’ families.

Cassell also said the families “believe the Department should pursue criminal prosecution of responsible Boeing corporate officials during the two disasters, including, in particular, former Boeing CEO Dennis Muilenburg.”

The looming impeachment issue deepens Boeing’s ongoing crisis over aircraft safety. The company has been in a difficult situation since January, when a door blew off a 737 Max 9 plane during a flight. No one was injured, but the incident grounded all similar planes and sparked a large Federal Aviation Administration (FAA) investigation.

The investigation found lax safety controls and manufacturing errors in Boeing’s building process, and the company came under pressure from regulators and Congress to fix the problems.

“There are issues with the safety culture at Boeing. Their priorities were focused on production, not safety and quality,” FAA Administrator Michael Whittaker said in March. “So our real focus now is to shift the focus from production to safety and quality.”

The FAA said its six-week audit of Boeing found “multiple instances in which the companies allegedly failed to meet production quality control requirements.”

The Hill has reached out to the Department of Justice for comment.

For the latest news, weather, sports and streaming videos, head to The Hill.