The Volokh Conspiracy
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Boeing Has Confessed to Committing Its Deadly Crime … and Should Now Plead Guilty
Boeing has no defense to the charged crime of defrauding the FAA. Rather than go through a pointless trial with a preordained result, it should plead guilty straightaway.
Yesterday Judge Reed O'Connor of the U.S. District Court for the Northern District of Texas set a trial date (June 23rd) in United State v. Boeing. The case concerns a long-pending federal criminal charge filed against Boeing for conspiring to defraud the FAA. Boeing has reportedly been dragging its heels about pleading guilty. Boeing has no defense. It should do the right thing and plead guilty as soon as possible.
As I've blogged about previously (see here, here, here, and here), the criminal charge pending against Boeing arises out of two deadly crashes of Boeing 737 MAX aircraft in 2018 and 2019. A Justice Department investigation uncovered the fact that Boeing had lied to the FAA about the safety of the aircraft—lies that led directly and proximately to the crashes killing 346 passengers and crew. On January 7, 2021, the Justice Department filed a criminal information with a one-count conspiracy charge against Boeing, alleging that
From at least in or around November 2016 through at least in or around December 2018, in the Northern District of Texas and elsewhere, the Defendant, THE BOEING COMPANY, knowingly and willfully, and with the intent to defraud, conspired and agreed together with others to defraud the United States by impairing, obstructing, defeating, and interfering with, by dishonest means, the lawful function of a United States government agency, to wit, the Federal Aviation Administration Aircraft Evaluation Group ("FAA AEG") within the United States Department of Transportation, in connection with the FAA AEG's evaluation of the Boeing 737 MAX airplane's Maneuvering Characteristics Augmentation System ….
A few minutes after filing the charges, the Justice Department then filed a deferred prosecution agreement (DPA), deferring prosecution on the condition that Boeing take certain anti-fraud and other safety measures over the next three years. Judge O'Connor approved the DPA.
But later that year, I filed a Crime Victims' Rights Act (CVRA) challenge to the "sweetheart" DPA, arguing that the Justice Department had failed to confer with the victims' families about the deal. Following several evidentiary hearings, Judge O'Connor agreed that the Department had violated the CVRA in failing to confer with the victims' families in what can properly be described as "the deadliest corporate crime in U.S. history." But after further litigation—and an intermediate ruling from the Fifth Circuit that further victims' rights challenges were "premature"—the DPA's three-year term expired on January 7, 2024. The Justice Department then reviewed whether Boeing had lived up to its DPA obligations. Noting the blowout of a doorplug on a Boeing 737 MAX on January 5, 2024 (two days before the DPA expired), the Department concluded that Boeing had failed. On May 14, 2024, the Department filed its notice that Boeing had breached its safety obligations under the DPA. In July 2024, the Justice Department and Boeing reached a plea deal, under which Boeing would plead guilty, pay a $455 million fine, but would not admit to causing the 346 deaths. On behalf of my victims' families, I objected. And following a hearing, on December 5, 2024, Judge O'Connor rejected the proposed plea agreement, citing a constitutionally dubious DEI provision and lack of judicial involvement in monitoring Boeing. He gave the parties (DOJ and Boeing) thirty-days to advise how they wanted to proceed.
Since then, the Justice Department and Boeing have asked for—and received—three extensions of time to report back to Judge O'Connor. The extensions were to February 16, 2025; to March 14, 2025; and, most recently, to April 11, 2025. With regard to the last extension, I filed a notice for my victims' families that, if further extensions beyond April 11 were sought, then the families would object. Under the Crime Victims' Rights Act (CVRA), they have a right to proceedings free from unreasonable delay.
But before the April 11 deadline arrived, Judge O'Connor acted to speed things along. Two days ago (late on March 24), the Wall Street Journal (and other media) reported that Boeing was pushing to withdraw from any plea agreement that would require it to plead guilty. And then, less than 24 hours later, Judge O'Connor sua sponte set a trial date in the case:
The Court hereby VACATES its April 11, 2025, deadline in its previous Order and instead sets this case for trial on Monday, June 23, 2025, at 9:00 am in the Second Floor Courtroom, 501 W. 10th Street, Fort Worth, Texas. A separate Scheduling Order shall issue.
Judge O'Connor's order is good news, not only for the victims' families but also for the fair administration of justice. The families have now waited for years for justice in this case. Judge O'Connor's order means that they will either have a resolution by June 23—or a chance to see Boeing stand trial for its crime. Boeing has clearly used its expansive legal team to delay the proceedings. At some point, enough is enough. That point appears to have arrived yesterday.
Since yesterday's order, I've also seen some speculation that Boeing might just decide to go to trial and take its chances with a jury. This speculation does not full appreciate where things stand. Boeing has no defense.
I previously filed a declaration about how simple it would be for the Government to now go to trial and convict Boeing. Boeing has fully and formally "confessed" to its crime in a binding court filing. Specifically, when Boeing entered into the DPA in January 2021, it agreed to provisions that constitute a full confession that it is guilty of the charged crime. DPA Paragraph 2 states that Boeing "admits" that the Statement of Facts is "true and accurate":
The Company admits, accepts, and acknowledges that it is responsible under United States law for the acts of its officers, directors, employees, and agents as charged in the Information, and as set forth in the Statement of Facts, and that the allegations described in the Information and the facts described in the Statement of Facts are true and accurate.
DPA ¶ 2 (emphases added). Boeing goes on to agree that the Statement of Facts can be used by the Government in any deferred (i.e., any later) prosecution, such as a prosecution that might follow in the wake of the Government's "breach" determination:
The Company agrees that, effective as of the date it signs this Agreement, in any prosecution that is deferred by this Agreement, it will not dispute the Statement of Case Facts set forth in this Agreement, and, in any such prosecution, the Statement of Facts shall be admissible as: (a) substantive evidence offered by the government in its case-in-chief and rebuttal case; (b) impeachment evidence offered by the government on cross-examination; and (c) evidence at any sentencing hearing or other hearing. In addition, in connection therewith, the Company agrees not to assert any claim under the United States Constitution, Rule 410 of the Federal Rules of Evidence, Rule 11(f) of the Federal Rules of Criminal Procedure, Section 1B1.1(a) of the United States Sentencing Guidelines ("USSG" or "Sentencing Guidelines"), or any other federal rule that the Statement of Facts should be suppressed or is otherwise inadmissible as evidence in any form.
DPA ¶ 2.
The DPA was signed by the highest executive possible in The Boeing Company, specifically David L. Calhoun, then the President and Chief Executive Officer of Boeing—as evidenced by the detailed "Company Officer's Certificate" in the agreement. And there was also a Certificate of Counsel by Boeing's large legal team, attesting to the validity of Boeing's DPA representations.
The DPA's Statement of Facts contains 54 paragraphs. Those paragraphs cover in detail all of the necessary elements and facts required to prove beyond a reasonable doubt that Boeing is guilty of the crime charged in the Criminal Information. In other words, Boeing's attestation that the Statement of Facts is "true and accurate" constitutes a complete, signed confession by Boeing to the pending charge. That conclusion cannot be reasonably contested by Boeing (or the Government). The DPA's Statement of Facts was designed to undergird a deferred prosecution agreement, allowing a later prosecution to be effectively based on the representations in the DPA. And on their face, the 54 facts appear to be credible and consistent in describing how Boeing conspired to defraud the FAA.
In its extensive briefing regarding the proposed plea agreement last summer, Boeing only vaguely argued that, in a contested case, "Boeing could bring certain challenges to the admissibility of that statement of facts." Boeing Br. Supporting Plea at 21. Boeing did not identify what those challenges to admissibility might be, since it specifically agreed that "the Statement of Facts shall be admissible as … substantive evidence offered by the government in its case-in-chief …." DPA ¶ 2 (emphasis added). And presumably the only reason that Boeing asserted that it "could" bring a challenge—not that it would bring a challenge—is that Boeing specifically "agree[d] not to assert any claim" that those facts should be suppressed. In light of Boeing's specific and voluntary agreement to the admissibility of the Statement of Facts, any challenge by Boeing to the admissibility of the Statement of Facts in a trial would be not only frivolous but also a violation of its DPA obligations.
Another type of evidence that would be available in a trial of The Boeing Company is incriminating evidence from the defendant itself (i.e., from Boeing's executives). During the trial of an individual defendant, the Government (of course) cannot call the defendant to the stand and ask him whether he is guilty. Individual defendants are entitled to assert a Fifth Amendment right against Self-Incrimination. But in any trial of The Boeing Company, the Government could simply call a Boeing executive to admit the company's guilt. As a corporation, Boeing has no Fifth Amendment right against self-incrimination. See Braswell v. United States, 487 U.S. 99 (1988).
In short, Boeing is not only guilty of the crime of conspiring to defraud the FAA but it has already given an ironclad confession of its guilt. It would have to admit the truth at trial. Going to trial would be pointless.
So what should Boeing do? To me, as an attorney for families who lost loved ones as a direct result of Boeing's deadly crime, the answer to that question is obvious: Boeing should stop dragging its heels and simply do the right thing. It should plead guilty to its crime, acknowledge its responsibility for killing 346 people, and then ask the judge to impose an appropriate sentence.
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Could Boeing argue that the factual admissions in the DPA are unconstitutional insofar as they prevent Boeing from contesting their validity in a jury trial? A jury has the absolute power to disregard evidence, and I’ve never heard of a defendant being prohibited from testifying in their own defense on the stand, even if their defense is wildly implausible and contradicts their prior confession.
Hi Vik,
To clarify: I'm not arguing that Boeing executives would be prohibited from taking the stand. My limited argument is that it would be pointless, since Boeing (through its highest ranking executive) has already admitted it is guilty. Of course, as you mention, the jury has the absolute right to disregard evidence. But it seems to me that with a sworn confession signed by Boeing's CEO (based on advice of counsel) admitting it is guilty of a serious federal crime, the jury would be unlikely to do so. Instead, the jury is highly likely to convict -- which is, in any event, the right result.
That makes sense. I agree that it would take a truly foolish jury to acquit based on the evidence presented. Frankly, the only thing I’m miffed about here is that the government is charging the fictitious corporate entity instead of real human beings.
“In short, Boeing is not only guilty of the crime of conspiring to defraud the FAA but it has already given an ironclad confession of its guilt. It would have to admit the truth at trial. Going to trial would be pointless.”
I am gobsmacked that a professor of criminal law and former U.S. District Court Judge is apparently unfamiliar with Rule 410(a)(4) of the Federal Rules of Evidence:
The government may be able to prove Boeing’s guilt beyond a reasonable doubt at a jury trial, whether Boeing does or does not have a defense. The accused need not prove anything.
Hi Not Guilty,
As noted in the post, Boeing specifically waived any rights it had under Fed. R. Evidence 410 - as discussed in the original post. In any event, a statement of facts attached to Boeing's deferred prosecution agreement does not fall within any of the four categories above. You may be confusing the statement of facts associated with a guilty plea, which would (of course) fall within the protections of Rule 410. But the deferred prosecution agreement did not involve, for example "a guilty plea later withdrawn."
Putting aside the question of waiver, it looks to me like the deferred prosecution agreement did involve "discussions [which] did not result in a guilty plea" within the ambit of Rule 410(a)(4).
On the Rule 410(a)(4) issue - a statement made in a formal deferred prosecution agreement is clearly not "a statement made during plea discussions" - it is a statement made in ... well .. a deferred prosecution agreement!
It waives any rights under 410 in any prosecution that is deferred by this agreement. But the DPA is not operative, and the prosecution that would go forward is not pursuant to the DPA.
On the waiver issue - the Arizona Supreme Court (interpreting identical language to Fed. R. 410) has concluded that a waiver in a DPA/functional equivalent is enforceable:
In interpreting Arizona's evidentiary rules, we look to federal law when our rule is identical to the corresponding federal rule[.]” Hernandez v. State, 203 Ariz. 196, 198 ¶ 10, 52 P.3d 765, 767 (2002). Arizona's Rule 410(a)(4) mirrors its federal counterpart. See Fed. R. Evid. 410(a)(4). In interpreting Federal Rule 410, the United States Supreme Court has held that a Rule 410 waiver is enforceable “absent some affirmative indication that the agreement was entered into unknowingly or involuntarily.” United States v. Mezzanatto, 513 U.S. 196, 210 (1995).
See State v. Gill:
https://caselaw.findlaw.com/court/az-supreme-court/1856713.html
Can the parties prepare for a trial in 3 months? Aside from that, I wonder if the Trump administration wants a guilty verdict.
Can Boeing argue that the DPA admissions cannot be used because the DPA itself was invalid?
One hurdle you're facing is the government's desire for Boeing to build combat aircraft for the US military, and a criminal trial threatens that.
Boeing's factories are a strategic defense industry. Anything that threatens their solvency will color prosecutorial decisions.
This is probably why the DPA was first put forward under Trump 45. It's why Biden then took a hands-off approach (plus diversity!), and why the Trump 47 admin is handling this with such timidity.
From a moral and ethical standpoint, I wish you the best as you seek justice for the families of those who died. But I don't think you're going to get much.
So some company official made a business decision to sign some piece of paper, acknowledging a faulty product. That does not mean Boeing is guilty of a crime. If Boeing is really guilty, then the DoJ should have no trouble proving it at trial.
...ask the judge to impose an appropriate sentence
What is appropriate here? There are 346 dead people. What's the liability limit?
Generally, the fine for an organization is a small multiple of the dollar value of the fraud plus restitution to victims of the fraud. Boeing and the government had agreed on the dollar value of the fraud. Paul Cassell thought the agreed value too low. If Boeing is convicted at trial the judge is not bound by that agreement.
One essential question for the judge: Was the value of the fraud the cost savings in getting the faulty model certified (8 figures), or was it the sales of the improperly certified model (10 figures)?
Oh I see, this is all a scheme to fleece the Boeing shareholders for a poor engineering decision many years ago. I hope the Trump administration drops the case.
The allegation is that they lied about it. I understand from your posting (and family) history how that wouldn't bother you.
They should jail the individuals that actually lied. Group punishment is always morally questionable, particularly when directed to marginally involved people (e.g., shareholders 10+ years later).
Boeing shareholders may be on the hook to the extent of their holdings; they are in no wise being 'fleeced.'
Boeing should be put in prison. It is, after all, a person, according to the Supreme Court.
Sigh. What do we actually want to accomplish here? Do we want vengeance? Or do we want to prevent accidents like this from happening again? If we want vengeance, this is the right approach. Strip the company of R&D funding, punish stockholders, force talented engineers to be laid off, and weaken Boeing's competitive stance vs. foreign competition.
But know this: nations that criminalize accidents have terrible safety records. Why? Because when engineers are facing prison for engineering decisions, they lawyer up. They have to. There's too much risk in not doing so. They don't cooperate with accident investigators. They don't testify unless compelled to by subpoena, and even then, they aren't going to explain anything in a manner that a jury can understand.
Worse yet, the most talented ones just aren't going to go into aerospace in the first place. Too much risk for not enough reward. Why take the risk, when you can probably make as much money doing Web site works for Onlyfans? And the fringe benefits are a lot better.
So this is completely the wrong approach. I have no issue with compensating the victims or their families. I do hav e an issue with a "fine" that is intended to cripple the company. That's not punishing the people responsible -- the senior executives, who have horribly mis-managed the company. If Boeing dies, they will float away on their golden parachutes, while all the other employees who weren't the decision-makers lose their jobs. Do you really want to punish the people responsible? Require the senior executives to all resign, every one of them. Resign, and in their resignations, admit their guilt and sign away their rights to any post-employment benefits. Then maybe Boeing will get some management that won't do this kind of crap again. Put the company under extra-strict FAA scurrility. That's fine. People know how to do their jobs and what is expected of them. Just get rid of the upper management that treats Boeing like an investment bank that builds airplanes on the side. That is the only true fix for the problem.
Yes, the prosecution is counter-productive.