Criminal Charges Could Have Serious Implications for Boeing
The Justice Department is currently considering bringing criminal charges against Boeing, a move that could have significant repercussions for the company. While criminal charges against corporations are more common for small, closely-held companies, they are rare for publicly traded companies, especially those as prominent as Boeing.
Jennifer Arlen, a law professor at New York University, explained, “You don’t have to convict that person. Sometimes you don’t need to name them.” In the case of a small company, the owner may be willing to have the company take the hit and face criminal charges, even if it means going out of business due to financial penalties.
However, at a major public company like Boeing, top executives might agree to a settlement that results in criminal charges for lower-level individuals. Yet, it is unlikely that top executives themselves would face personal criminal prosecution.
Boeing has previously faced civil settlements for charges such as violating the Arms Export Control Act and the False Claims Act. The company has paid significant fines, but it has avoided criminal convictions by agreeing to these civil settlements.
In a recent case, Boeing settled allegations of defrauding the Federal Aviation Administration related to the certification of the 737 Max. This settlement included a deferred prosecution agreement, which gave Boeing a probationary period to prove that it had changed its behavior.
However, a recent incident involving a Boeing 737 Max jet may have opened the door to potential criminal charges. A source familiar with the case has stated that prosecutors are urging for charges to be filed against Boeing.
If new criminal charges are brought against Boeing, the company could face significantly larger fines, potentially stretching into the billions of dollars. This could further worsen Boeing’s already precarious financial situation, potentially leading to a junk bond status for the company.
Experts suggest that Boeing may end up with a federal monitor overseeing its business operations. Additionally, pleading guilty to criminal charges could result in restrictions on doing business in certain countries, a scenario that could have devastating consequences for Boeing given its reliance on government contracts.
Ultimately, any criminal charges brought against Boeing could have far-reaching implications, affecting not only the company itself but also the broader economy and national security.
