Deal With U.S. Would Let Boeing Avoid Prosecution

[Judi Lynn]

Deal With U.S. Would Let Boeing Avoid Prosecution

By LESLIE WAYNE
Published: May 16, 2006

Boeing, the nation's second-largest military contractor, has agreed to pay $615 million under a tentative deal with federal prosecutors that will allow the company to avoid criminal charges, Boeing and senior Justice Department officials said yesterday.

The agreement, which is expected to become final in a few weeks, would end a three-year investigation into wrongdoing by Boeing employees and would require the company to pay $565 million to cover civil claims and $50 million to end a criminal inquiry. Senior Justice Department officials, who asked on a telephone news conference not to be identified, said they believed this was the largest fine ever imposed on a military contractor.

While avoiding criminal charges, Boeing will agree to "accept responsibility," the Justice officials said, for the actions of its employees. One case involved the theft of proprietary data from a rival, the Lockheed Martin Corporation. The other involved Boeing's hiring of a former Air Force official who oversaw Boeing contracts at the Pentagon.

Boeing will also be monitored by the Justice Department for two years and be required to maintain a federal ethics and compliance program as well as to cooperate with federal investigators in any future investigations. Should Boeing violate these provisions, it could be prosecuted and fined up to $10 million, according to the settlement.
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http://www.nytimes.com/2006/05/16/business/16boeing.html?_r=1&oref=slogin

[maddezmom]

1. duplicate topic

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=2285568