When a person is charged with a crime, it is a relatively straightforward process. If the person is found guilty, they may have to pay fines or serve jail time. But what happens when it’s a company that’s charged with a crime?
Specifically, what does it mean when a huge corporation like Boeing is accused of engaging in criminal activity?
It Started with Two Planes Crashes
Boeing’s legal troubles started in 2018 when one of their planes, a 737 Max 8 operating under Lion Air, crashed in Jakarta, Indonesia, and killed all 189 passengers and crew onboard. The trouble continued in 2019 when another Boeing 727 Max 8 crashed in 2019. The plane operating under Ethiopia Airlines crashed in Addis Ababa, Ethiopia, and killed all 157 people onboard.
The second crash of the same plane model led Boeing to ground all 737 Max 8 planes across the world.
At that time, Boeing said they were issuing updates to the planes before they were allowed to go back in the air, and Boeing and the United States government began conducting investigations into why the crashes occurred. The results of the investigations led to the United States Justice Department getting involved.
The Justice Department found that Boeing defrauded the Federal Aviation Administration (FAA) by withholding information, and they considered filing criminal charges against Boeing.
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A Deal Helps Boeing Avoid Criminal Charges
Rather than filing criminal charges against Boeing in 2021, the Justice Department worked out a deal with them.
Boeing would defer the case and avoid criminal charges if they did not commit any other wrongdoing within three years. They would also have to:
- Pay more than $2.5 billion in a legal settlement related to the two crashes
- Establish a $500 million fund to compensate the families of those who died
- Pay a fine of nearly $244 million
- Pay $1.77 billion in compensation to airline customers who had travel disruptions due to the grounding of planes
Deferred prosecution agreements are often used by the government in criminal cases against corporations. If Boeing abided by the guidelines, the charges against them would be dropped, but Boeing did not meet the terms outlined in the agreement.
Two days before the expiration of the deferred prosecution agreement, a Boeing plane had another major malfunction. A door plug panel in the fuselage of a Boeing plane operated by Alaska Airlines blew out just a few minutes into a flight out of Portland, Oregon.
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A Violation and Another Deal
In May 2024, the Justice Department issued a letter to the judge stating that Boeing violated the terms of their 2021 settlement, per reporting by The New York Times.
In the letter, the Justice Department said Boeing failed to “design, implement and enforce” a compliance and ethics program to prevent and detect violations of US fraud laws in the company’s operations.
Rather than fight the charges against them, Boeing agreed to a plea deal. In July 2024, Boeing plead guilty to a felony charge of conspiring to defraud the federal government, per The New York Times.
If Boeing did not plead guilty, it is likely that the case would have gone to trial. By agreeing to the plea deal, Boeing avoided a more lengthy court case.
As part of the deal:
- Boeing agreed to pay a $487.2 million fine, the maximum allowed by law.
- They agreed to invest $455 million over the next three years on strengthening compliance and safety programs.
- Boeing will be put on probation and supervised by the Federal District Court for the Northern District of Texas for three years. The Justice Department will appoint an independent compliance monitor to make sure safety measures are in place and followed.
- The company’s board of directors must meet with the crash victims’ families.
- The company will face additional penalties if any of the terms are violated.
Boeing’s decision to plead guilty does not provide immunity to any employees or corporate executives.
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Will Individuals Be Criminally Charged?
Whether or not individuals will be criminally charged in the case is unknown at this time. Two Boeing employees have been accused of withholding information from the Federal Aviation Administration, per The New York Times.
It is rare for top executives to be held accountable for crimes committed by large corporations, but it can happen. In this case, the consequences have fallen on the organization as a whole and not on any particular individuals.
Talk to An Attorney Today
The legal system is complicated. Whether you are a large corporation or an individual charged with a crime, you need a trusted attorney by your side. If you have been charged with a crime, talk to a criminal defense attorney today.
All consultations with attorney TJ Grimaldi are free, so call today. Request your consultation or call 813-226-1023 now.
TJ Grimaldi joined McIntyre in 2011. McIntyre recruited TJ to create the divisions of personal injury and family law, as well as to expand the existing criminal defense practice at the firm. During TJ’s tenure at McIntyre, he has helped oversee and grow these practice areas. He continues to practice in these divisions while also expanding his own practice areas to include estate planning and immigration law. TJ is admitted to practice before the Supreme Court of Florida and the United States District Court for the Middle and Southern Districts of Florida.
