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Boeing fined $2.5B, charged with fraud conspiracy by DoJ in 737 MAX crashes
- Boeing (NYSE:BA)-2% after-hours on news the company will pay more than
$2.5B in total criminal fines as part of an agreement with the U.S.
Department of Justice to resolve a criminal charge related to a
conspiracy
to defraud the Federal Aviation Administration in connection with the two
fatal crashes of the 737 MAX jet.
- Boeing's payment reportedly consists of a criminal monetary penalty of
$243.6M, compensation payments to Boeing customers of $1.77B and the
establishment of a $500M crash victim beneficiaries fund.
- "Boeing's employees chose the path of profit over candor by concealing
material information from the FAA concerning the operation of its 737 MAX
airplane and engaging in an effort to cover up their deception,"
according
to a statement from the DoJ's Criminal Division.
- Last month's report on aviation safety oversight from the Senate
Committee on Commerce, Science & Transportation "shows significant
weaknesses at the FAA, but some conclusions are weakly supported at best
and at worst suggestive," Dhierin Bechai writes in a recent analysis
posted on Seeking Alpha.
|Today, 4:22 PM|33 Comments
Boeing fined $2.5B, charged with fraud conspiracy by DoJ in 737 MAX crashes
- Boeing (NYSE:BA)-2% after-hours on news the company will pay more than
$2.5B in total criminal fines as part of an agreement with the U.S.
Department of Justice to resolve a criminal charge related to a
conspiracy
to defraud the Federal Aviation Administration in connection with the two
fatal crashes of the 737 MAX jet.
- Boeing's payment reportedly consists of a criminal monetary penalty of
$243.6M, compensation payments to Boeing customers of $1.77B and the
establishment of a $500M crash victim beneficiaries fund.
- "Boeing's employees chose the path of profit over candor by concealing
material information from the FAA concerning the operation of its 737 MAX
airplane and engaging in an effort to cover up their deception,"
according
to a statement from the DoJ's Criminal Division.
- Last month's report on aviation safety oversight from the Senate
Committee on Commerce, Science & Transportation "shows significant
weaknesses at the FAA, but some conclusions are weakly supported at best
and at worst suggestive," Dhierin Bechai writes in a recent analysis
posted on Seeking Alpha.
|Today, 4:22 PM|33 Comments
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