Boeing Pleads Guilty to Criminal Fraud Charge

The Department of Justice (DOJ) has announced a preliminary plea agreement with Boeing, which involves the aircraft manufacturer admitting guilt and agreeing to special conditions, including three years of oversight by an independent monitor. This comes as Boeing faces opposition from families of the Boeing 737 MAX crash victims, who have contested the plea deal.

Boeing was charged with conspiracy to defraud the FAA in January 2021. Photo: Boeing

The DOJ, representing the U.S. government in a fraud case against Boeing, disclosed the agreement on July 7, 2024. The charges stem from Boeing’s violation of a deferred prosecution agreement (DPA) related to two fatal 737 MAX crashes in October 2018 and March 2019.

While the DOJ and Boeing have agreed in principle, the final terms are still being documented. The DOJ expects to finalize the agreement by July 19. Boeing will plead guilty to conspiracy to defraud the U.S., specifically the FAA’s Aircraft Evaluation Group, and will face a fine of $487.2 million. The court will also determine restitution for the victims’ families. Additionally, Boeing will undergo a three-year probation period with an independent compliance monitor overseeing its operations. The victims’ families, seeking a $24.7 billion fine, have requested a discussion with the DOJ regarding any potential concessions for Boeing.