Boeing Fined $2.5Bn Over 737MAX Fraud Conspiracy

The willful misconduct of two former Boeing employees will now cost the American aircraft manufacturer a hefty US$2.5 billion. This follows an agreement entered between Boeing and the United Department of Justice (DOJ) to resolve a criminal charge brought to the aircraft manufacturer. The charge was related to a conspiracy to defraud the Federal Aviation Administration’s Aircraft Evaluation Group concerning their initial evaluation of the 737 MAX.

According to Boeing, two former Boeing employees intentionally failed to inform the FAA’s Aircraft Evaluation Group about changes to the Maneuvering Characteristics Augmentation System (MCAS). As a result, the Aircraft Evaluation Group did not have all the information about MCAS’s expanded operating range when it made its training determinations for the MAX. That saw Boeing charged with one count of conspiracy to defraud the United States.

“I firmly believe that entering into this resolution is the right thing for us to do—a step that appropriately acknowledges how we fell short of our values and expectations” says Boeing’s CEO, David Calhoun yesterday.