January 7, 2021
Airplane Manufacturer Charged with Conspiracy To Defraud FAA and Agrees To Pay Over $2.5 Billion
On January 7, 2021, the U.S. Department of Justice, Criminal Division’s Fraud Section charged The Boeing Company with conspiracy to defraud the United States. On the same date, Boeing entered into a deferred prosecution agreement (DPA) and agreed to pay over $2.5 billion.
The DPA requires Boeing to pay over $2.5 billion, which includes a $243.6 million criminal penalty and compensation payments totaling $1.77 billion to Boeing's 737 MAX airline customers. The agreement also mandates that Boeing establish a $500 million crash-victim beneficiaries fund to compensate the heirs, relatives, and legal beneficiaries of the 346 passengers who died in the Boeing 737 MAX crashes of Lion Air Flight 610 and Ethiopian Airlines Flight 302.
According to the information, Boeing willfully conspired and agreed with others to defraud the Federal Aviation Administration’s (FAA) Aircraft Evaluation Group by lying about the Boeing 737 MAX airplane's Maneuvering Characteristics Augmentation System, including for purposes of the 737 MAX Flight Standardization Board Report and the 737 MAX differences-training determination.
DOT-OIG is conducting this investigation with the Federal Bureau of Investigation (FBI).
Note: Indictments, informations, and criminal complaints are only accusations by the Government. All defendants are presumed innocent unless and until proven guilty.