Boeing Faces $243.6 Million Fine for Fraud Conspiracy Breach

Boeing has finalized a guilty plea to a criminal fraud conspiracy charge, agreeing to a $243.6 million fine. The Justice Department stated that Boeing breached its 2021 deferred prosecution agreement by allowing risky practices and inaccurate record-keeping. Boeing will also spend $455 million to improve safety and compliance programs.

Boeing has agreed to a guilty plea for criminal fraud conspiracy, facing a $243.6 million fine after breaching a 2021 deferred prosecution agreement, according to a court filing on Wednesday. The Justice Department announced that the aerospace giant allowed risky practices and failed to maintain accurate aircraft records.

The planemaker admitted to conspiring to mislead the Federal Aviation Administration about key software issues with the 737 MAX. Boeing said it will cooperate transparently with regulators to enhance safety, quality, and compliance programs. This plea follows charges that Boeing misrepresented software tied to fatal 737 MAX crashes in 2018 and 2019, which resulted in 346 deaths.

The Justice Department's investigation unveiled incomplete documentation and false stamping practices at Boeing factories. An independent monitor will oversee Boeing's compliance for three years, with potential extensions. The company committed to spending at least $455 million to bolster safety and compliance initiatives, a significant increase over previous allocations.

(With inputs from agencies.)