Menu

Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

737 Max Federal Fraud Conspiracy

Boeing entered into a deferred prosecution agreement with the Department of Justice to resolve a criminal charge of conspiracy to defraud the Federal Aviation Administration’s Aircraft Evaluation Group (FAA AEG) in connection with the FAA AEG’s evaluation of Boeing’s 737 Max. Boeing admitted that two of its flight technical pilots in 2016 deceived the FAA AEG about the aircraft’s Maneuvering Characteristics Augmentation System (MCAS) by not sharing information about an important change to the system. Boeing paid a total of over $2.5 billion, composed of a $243.6 million criminal penalty, $1.77 billion in compensation to airline customers, and a $500 million crash-victim beneficiaries fund to compensate the heirs, relatives, and legal beneficiaries of the 346 passengers who died in the crashes of Lion Air Flight 610 and Ethiopian Airlines Flight 302.

Misconduct Type
Consumer Affairs
Enforcement Agency
Justice
Contracting Party
None
Court Type
Criminal
Disposition
Deferred Prosecution Agreement
Date of Deferred Prosecution Agreement
1/7/2021
Contractors Involved Penalty
Total
Boeing Company $2,513,600,000
Further Information Released
Criminal Information 1/7/2021
Deferred Prosecution Agreement 1/7/2021
DOJ Press Release 1/7/2021

Federal Contractor Misconduct Database