(Corrects grammar in paragraph 7, adds dropped 'the' in
paragraph 12)
By Mike Spector
New York, June 1 (Reuters) - Boeing ( BA ) executives are
unlikely to be criminally charged over fatal crashes in 2018 and
2019 that killed 346 people as the statute of limitations has
likely passed, U.S. Justice Department officials told victims'
family members in a meeting.
Details were corroborated by a person familiar with the
gathering on Friday and correspondence reviewed by Reuters.
The deadline for prosecuting most federal crimes is five
years.
The Justice Department found in mid-May that Boeing ( BA ) violated
a 2021 deferred prosecution agreement (DPA) that had shielded
the company from a criminal charge arising from the fatal
crashes.
Officials agreed to ask a judge to dismiss the charge of
conspiring to defraud the U.S. Federal Aviation Administration
(FAA) as long as Boeing ( BA ) abided by the terms of the agreement
over a three-year period ending Jan. 7, 2024.
But an in-flight blowout two days before the agreement
expired exposed ongoing safety and quality issues. A panel blew
off a new Boeing 737 MAX 9 jet during a Jan. 5 Alaska Airlines
flight.
Boeing ( BA ) has until June 13 to outline any disagreements with
the department's finding that it violated the 2021 agreement.
The Justice Department has until July 7 to inform a federal
judge in Texas of its plans.
Boeing ( BA ) has said it believes it has "honored the terms of the
agreement" and looks forward to responding to the Justice
Department.
The Justice Department did not immediately respond to a
request for comment.
The department is weighing several options, including
whether to prosecute Boeing ( BA ) or extend the DPA by a year.
Officials could also enter into a new DPA or reach a
non-prosecution agreement that does not involve court
supervision.
Officials could also seek to negotiate a plea deal with
Boeing ( BA ) over the 2021 fraud charge or take the company to trial
over it.
Boeing ( BA ) could also face charges over its behavior during the
three-year term of the DPA, though officials have not found
evidence of any felonies committed during that period,
prosecutors told the victims' families, according to the source
familiar with the meeting.
Victims' family members are discussing asking officials to
seek an enhanced sentence should Boeing ( BA ) be prosecuted and
convicted, the source told Reuters.
In the meeting, Justice Department officials said they
believe they are unable to prove cases of federal manslaughter
or fraud involving aircraft parts beyond a reasonable doubt, the
person added.