737 MAX 7 Reveal - February 5, 2018. File photo

737 MAX 7 Reveal - February 5, 2018. File photo

Boeing fined $2.5 billion for deceiving aircraft safety regulators

The Boeing Company has agreed to pay the Department of Justice over $2.5 billion after conspiring to defraud FAA regulators evaluating Boeing’s 737 MAX airplane.

The Department of Justice claims that in 2016, two high-ranking technical pilots knowingly withheld information about changes made to the 737 MAX’s Maneuvering Characteristics Augmentation System (MCAS) from the FAA’s Aircraft Evaluation Group.

This deceit was believed to have deprived the FAA of information about the MCAS that could have allowed better safety regulations and training materials, according to the Department of Justice.

The charges came following investigations of the separate crashes of 737 MAX Lion Air Flight 610 and Ethiopian Airlines Flight 302, which killed a combined 346 people. The MCAS was activated in both of the incidents and is believed to have played a role in both crashes.

“The tragic crashes of Lion Air Flight 610 and Ethiopian Airlines Flight 302 exposed fraudulent and deceptive conduct by employees of one of the world’s leading commercial airplane manufacturers,” said Acting Assistant Attorney General David P. Burns of the Justice Department’s Criminal Division.

Boeing will pay a total criminal monetary amount of over $2.5 billion, composed of a criminal monetary penalty of $243.6 million, compensation payments to Boeing’s 737 MAX airline customers of $1.77 billion, and the establishment of a $500 million crash-victim beneficiaries fund to compensate the heirs, relatives and legal beneficiaries of the 346 passengers who died in the Boeing 737 MAX crashes of Lion Air Flight 610 and Ethiopian Airlines Flight 302.


In consideration of how we voice our opinions in the modern world, we’ve closed comments on our websites. We value the opinions of our readers and we encourage you to keep the conversation going.

Please feel free to share your story tips by emailing editor@kirklandreporter.com.

To share your opinion for publication, submit a letter through our website https://www.kirklandreporter.com/submit-letter/. Include your name, address and daytime phone number. (We’ll only publish your name and hometown.) We reserve the right to edit letters, but if you keep yours to 300 words or less, we won’t ask you to shorten it.

More in Business

Robert Toomey, CFA/CFP, is Vice President of Research for S. R. Schill & Associates on Mercer Island.
News of market volatility has felt like a pinball machine lately | Guest column

Webster’s dictionary defines the word volatility as “characterized by or subject to… Continue reading

Screenshot from City of Kirkland website.
City of Kirkland to offer relief funding to small businesses

Applications will be open until April 14, with funding awarded in May 2022.

The “Mini-O” is a miniature outdoor office built to be easily relocated. Courtesy photo
Kirkland, Redmond businesses among those at 2022 Seattle Home and Garden Show

Event runs Feb. 26 to March 6 at the Lumen Field Event Center.

Robert Toomey, CFA/CFP, is Vice President of Research for S. R. Schill & Associates on Mercer Island.
Volatility and disciplined planning in 2022’s stock market | Guest column

The stock market in January experienced significantly increased volatility. In the first… Continue reading

The Banh Mi Burger contains a lemongrass patty, pickled daikon carrots, pickled red cabbage, cilantro, jalapenos, plant-based mayonnaise, cucumber, umami sauce, and fresh cracked pepper. Courtesy of Plantiful Superfoods.
Plantiful Superfoods holds ribbon cutting and opening ceremony

Plantiful’s mission is to bridge the gap between meat lovers and plant lovers.

Wilde Rover Irish Pub. Courtesy of Wilde Rover Irish Pub’s Facebook.
Wilde Rover Irish Pub closes doors for good

Jan. 23 was Wilde Rover’s last night of staying open.

Snoqualmie Casino. Courtesy photo
Kirkland-based company sues to challenge ‘tribal gaming monopoly’ in Washington

Company called the state’s policy an “erroneous application of the Indian Gaming Regulatory Act.”

Robert Toomey, CFA/CFP, is Vice President of Research for S. R. Schill & Associates on Mercer Island.
The forces behind our current COVID-induced inflation | Guest column

Recent inflation numbers have been quite high and at levels not seen… Continue reading

Robert Toomey, CFA/CFP, is Vice President of Research for S. R. Schill & Associates on Mercer Island.
The ‘year end’ elements of financial planning | Guest column

With the end of the year fast approaching, we remind clients that… Continue reading

Robert Toomey, CFA/CFP, is Vice President of Research for S. R. Schill & Associates on Mercer Island.
How financial planners address plan uncertainty | Guest column

One of the key challenges we face as financial planners is dealing… Continue reading

Mixologist and general manager of Civility & Unrest, Joe Dietrich (photo by Cameron Sheppard)
If you want a regular cocktail, go somewhere else

Master mixologist Joe Dietrich is elevating cocktail culture at Bellevue’s Civility & Unrest.

Robert Toomey, CFA/CFP, is Vice President of Research for S. R. Schill & Associates on Mercer Island.
Is cryptocurrency really an investment? | Guest column

Undoubtedly you have heard about the new form of money known as… Continue reading