How Boeing defrauded the United States and escaped with a slap on the wrist

Boeing could face fines of up to $487 million for its expected guilty plea to a felony charge related to the 737 Max crashes. Critics argue that the deal is lenient. The plea involves accusations that the company hid information about a design flaw during the plane’s certification process, which led to two crashes and significant losses for Boeing. Although this corporate guilty plea is uncommon, the fines are seen as relatively minor compared to the company’s previous revenue and profits. The expected guilty plea has disappointed family members of the crash victims, who consider it to be a weak outcome. There is also controversy around the fact that no executives are facing charges, although the plea agreement does not grant them immunity. The lack of individual criminal charges is seen as a strategic decision by the Justice Department. The article also mentions that Boeing may face “clawbacks,” where executives and board members may have to return bonuses and compensation. However, no clawbacks have occurred so far. The article notes that despite the guilty plea, Boeing is unlikely to lose its government contracts, which account for a significant portion of its revenue. The government is expected to grant waivers for the contracts due to the lack of alternatives and the importance of Boeing to the economy and air travel system.