WASHINGTON: The Justice Department has reached a deal with Boeing that will allow the airplane giant to avoid criminal prosecution for allegedly misleading US regulators about the 737 Max jetliner before two of the planes crashed and killed 346 people, according to court papers filed Friday.
Under the “agreement in principle,” which still needs to be finalized, Boeing would pay or invest more than $1.1 billion, including an additional $445 million for the crash victims’ families, the Justice Department said.
In return, the department has agreed to dismiss the fraud charge against Boeing, allowing the manufacturer to avoid a possible criminal conviction that could have jeopardized the company’s status as a federal contractor, according to experts.
“Ultimately, in applying the facts, the law, and Department policy, we are confident that this resolution is the most just outcome with practical benefits,” a Justice Department spokesperson said in a statement.
“Nothing will diminish the victims’ losses, but this resolution holds Boeing financially accountable, provides finality and compensation for the families and makes an impact for the safety of future air travelers.”
Boeing on Friday declined to comment.
Some relatives of the passengers who died in the crashes, which took place off the coast of Indonesia and in Ethiopia less than five months apart in 2018 and 2019, have been pushing for a public trial, the prosecution of former company officials, and more severe financial punishment for Boeing. The Justice Department noted that the victims’ families had mixed views on the proposed deal.
“This kind of non-prosecution deal is unprecedented and obviously wrong for the deadliest corporate crime in US history,” said Paul Cassell, an attorney for many of the families in the long-running case. “My families will object and hope to convince the court to reject it.”
Javier de Luis, whose sister, Graziella, died in the Ethiopia crash, said the Justice Department is walking away “from any pretense to seek justice for the victims of the 737Max crashes.”
“The message sent by this action to companies around the country is, don’t worry about making your products safe for your customers,” he said in a statement. “Even if you kill them, just pay a small fine and move on.”
Boeing was accused of misleading the Federal Aviation Administration about aspects of the Max before the agency certified the plane for flight. Boeing did not tell airlines and pilots about a new software system, called MCAS, that could turn the plane’s nose down without input from pilots if a sensor detected that the plane might go into an aerodynamic stall.
The Max planes crashed after a faulty reading from the sensor pushed the nose down and pilots were unable to regain control. After the second crash, Max jets were grounded worldwide until the company redesigned MCAS to make it less powerful and to use signals from two sensors, not just one.
The Justice Department charged Boeing in 2021 with deceiving FAA regulators about the software, which did not exist in older 737s, and about how much training pilots would need to fly the plane safely. The department agreed not to prosecute Boeing at the time, however, if the company paid a $2.5 billion settlement, including the $243.6 million fine, and took steps to comply with anti-fraud laws for three years.
Federal prosecutors, however, last year said Boeing violated the terms of the 2021 agreement by failing to make promised changes to detect and prevent violations of federal anti-fraud laws. Boeing agreed last July to plead guilty to the felony fraud charge instead of enduring a potentially lengthy public trial.
But in December, US District Judge Reed O’Connor in Fort Worth rejected the plea deal. The judge said the diversity, inclusion and equity, or DEI, policies in the government and at Boeing could result in race being a factor in picking a monitor to oversee Boeing’s compliance with the agreement.
The plea deal had called for an independent monitor to be named to oversee Boeing’s safety and quality procedures for three years. Under the agreement announced Friday, Boeing must retain an “independent compliance consultant” who will make recommendations for “further improvement” and report back to the government, according to court papers.
US Justice Department reaches deal to allow Boeing to avoid prosecution over 737 Max crashes
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US Justice Department reaches deal to allow Boeing to avoid prosecution over 737 Max crashes
- Under the agreement announced Friday, Boeing must retain an “independent compliance consultant” who will make recommendations for “further improvement”
Trump warns Maduro against playing ‘tough’ as US escalates pressure campaign on Venezuela
- Venezuelan President Nicolas Maduro on Monday fired back at Donald Trump, who has ordered US naval forces to blockade the South American country's oil wealth, saying the US president would be "better off" focusing on domestic issues rather than threatenin
- The Defense Department, under Trump’s orders, continues its campaign of attacks on smaller vessels in the Caribbean and eastern Pacific Ocean that it alleges are carrying drugs to the United States and beyond
WEST PALM BEACH, Florida: President Donald Trump on Monday delivered a new warning to Venezuelan President Nicolás Maduro as the US Coast Guard steps up efforts to interdict oil tankers in the Caribbean Sea as part of the Republican administration’s escalating pressure campaign on the government in Caracas.
Trump was surrounded by his top national security aides, Secretary of State Marco Rubio and Defense Secretary Pete Hegseth, as he suggested that he remains ready to further escalate his four-month pressure campaign on the Maduro government, which began with the stated purpose of stemming the flow of illegal drugs from the South American nation but has developed into something more amorphous.
“If he wants to do something, if he plays tough, it’ll be the last time he’ll ever be able to play tough,” Trump said of Maduro as he took a break from his Florida holiday vacation to announce plans for the Navy to build a new, large warship.
Trump levied his latest threat as the US Coast Guard on Monday continued for a second day to chase a sanctioned oil tanker that the Trump administration describes as part of a “dark fleet” Venezuela is using to evade US sanctions. The tanker, according to the White House, is flying under a false flag and is under a US judicial seizure order.
“It’s moving along and we’ll end up getting it,” Trump said.
It is the third tanker pursued by the Coast Guard, which on Saturday seized a Panama-flagged vessel called Centuries that US officials said was part of the Venezuelan shadow fleet.
The Coast Guard, with assistance from the Navy, seized a sanctioned tanker called Skipper on Dec. 10, also part of the shadow fleet of tankers that the US says operates on the fringes of the law to move sanctioned cargo. That ship was registered in Panama.
Trump, after that first seizure, said the US would carry out a “blockade” of Venezuela. Trump has repeatedly said that Maduro’s days in power are numbered.
Last week, Trump demanded that Venezuela return assets that it seized from US oil companies years ago, justifying anew his announcement of a blockade against sanctioned oil tankers traveling to or from the South American country.
Homeland Security Secretary Kristi Noem, whose agency oversees the Coast Guard, said in a Monday appearance on “Fox & Friends” that the targeting of tankers is intended to send “a message around the world that the illegal activity that Maduro is participating in cannot stand, he needs to be gone, and that we will stand up for our people.”
Russian diplomats evacuate families from Caracas
Meanwhile, Russia’s Foreign Ministry started evacuating the families of diplomats from Venezuela, according to a European intelligence official speaking on condition of anonymity to discuss sensitive information.
The official told The Associated Press the evacuations include women and children and began on Friday, adding that Russian Foreign Ministry officials are assessing the situation in Venezuela in “very grim tones.” The ministry said in an X posting that it was not evacuating the embassy but did not address queries about whether it was evacuating the families of diplomats.
Venezuela’s Foreign Minister Yván Gil on Monday said he spoke by phone with his Russian counterpart, Sergey Lavrov, who he said expressed Russia’s support for Venezuela against Trump’s declared blockade of sanctioned oil tankers.
“We reviewed the aggressions and flagrant violations of international law that have been committed in the Caribbean: attacks against vessels and extrajudicial executions, and the unlawful acts of piracy carried out by the United States government,” Gil said in a statement.
The scene on a Venezuelan beach near a refinery
While US forces targeted the vessels in international waters over the weekend, a tanker that’s considered part of the shadow fleet was spotted moving between Venezuelan refineries, including one about three hours west of the capital, Caracas.
The tanker remained at the refinery in El Palito through Sunday, when families went to the town’s beach to relax with children now on break from school.
Music played on loudspeakers as people swam and surfed with the tanker in the background. Families and groups of teenagers enjoyed themselves, but Manuel Salazar, who has parked cars at the beach for more than three decades, noticed differences from years past, when the country’s oil-dependent economy was in better shape and the energy industry produced at least double the current 1 million barrels per day.
“Up to nine or 10 tankers would wait out there in the bay. One would leave, another would come in,” Salazar, 68, said. “Now, look, one.”
The tanker in El Palito has been identified by Transparencia Venezuela, an independent watchdog promoting government accountability, to be part of the shadow fleet.
Area residents on Sunday recalled when tankers would sound their horns at midnight New Year’s Eve, while some would even send up fireworks to celebrate the holiday.
“Before, during vacations, they’d have barbecues; now all you see is bread with bologna,” Salazar said of Venezuelan families spending the holiday at the beach next to the refinery. “Things are expensive. Food prices keep going up and up every day.”
Venezuela’s ruling party-controlled National Assembly on Monday gave initial approval to a measure that would criminalize a broad range of activities that could be linked to the seizure of oil tankers.
Lawmaker Giuseppe Alessandrello, who introduced the bill, said people could be fined and imprisoned for up to 20 years for promoting, requesting, supporting, financing or participating in “acts of piracy, blockades or other international illegal acts against” commercial entities operating with the South American country.
The Defense Department, under Trump’s orders, continues its campaign of attacks on smaller vessels in the Caribbean and eastern Pacific Ocean that it alleges are carrying drugs to the United States and beyond.
At least 104 people have been killed in 28 known strikes since early September. The strikes have faced scrutiny from US lawmakers and human rights activists, who say the administration has offered scant evidence that its targets are indeed drug smugglers and that the fatal strikes amount to extrajudicial killings.
