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Boeing to Plead Guilty to Criminal Fraud Conspiracy Over 737 Max Crashes

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Boeing to Plead Guilty to Criminal Fraud Conspiracy Over 737 Max Crashes

Boeing has agreed to plead guilty to a criminal fraud conspiracy charge after the US found the company violated a deal meant to reform it after two fatal crashes by its 737 Max planes that killed 346 passengers and crew.

Settlement Sparks Outrage from Victims’ Families

The Department of Justice (DoJ) said the plane-maker had also agreed to pay a criminal fine of $243.6 million (£190 million). However, the families of the people who died on the flights five years ago have criticized it as a “sweetheart deal” that would allow Boeing to avoid full responsibility for the deaths. One called it an “atrocious abomination.”

Avoiding a Criminal Trial

The settlement must now be approved by a US judge. By pleading guilty, Boeing will avoid the spectacle of a criminal trial—something that victims’ families have been pressing for. The company has been in crisis over its safety record since two near-identical crashes involving 737 Max aircraft in 2018 and 2019. It led to the global grounding of the plane for more than a year.

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Allegations of Deception

In 2021, prosecutors charged Boeing with one count of conspiracy to defraud regulators, alleging it had deceived the Federal Aviation Administration (FAA) about its MCAS flight control system, which was implicated in both crashes. It agreed not to prosecute Boeing if the company paid a penalty and successfully completed a three-year period of increased monitoring and reporting.

Renewed Scrutiny After Incident

But in January, shortly before that period was due to end, a door panel in a Boeing plane operated by Alaska Airlines blew out soon after take-off and forced the jet to land. No one was injured during the incident, but it intensified scrutiny over how much progress Boeing had made on improving its safety and quality record.

DOJ’s Findings

In May, the DoJ said it had found Boeing had violated the terms of the agreement, opening up the possibility of prosecution. Boeing’s decision to plead guilty is still a significant black mark for the firm because it means that the company—which is a prominent military contractor for the US government—now has a criminal record. It is also one of the world’s two biggest manufacturers of commercial jets.

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Potential Impact on Contracting Business

It is not immediately clear how the criminal record will affect the firm’s contracting business. The government typically bars or suspends firms with records from participating in bids but can grant waivers.

Criticism from Legal and Safety Advocates

Paul Cassell, a lawyer representing some families of people killed on the 2018 and 2019 flights, said, “This sweetheart deal fails to recognize that because of Boeing’s conspiracy, 346 people died.” In a letter to the government in June, Mr. Cassell had urged the DoJ to fine Boeing more than $24 billion. Zipporah Kuria, who lost her father Joseph in one of the fatal crashes, said the plea was an “atrocious abomination.”

A Call for Accountability

“Miscarriage of justice is a gross understatement in describing this,” she said. “I hope that, God forbid, if this happens again, the DoJ is reminded that it had the opportunity to do something meaningful and instead chose not to.” Ed Pierson, executive director of Foundation for Aviation Safety and a former senior manager at Boeing, said the plea was “seriously disappointing” and “a terrible deal for justice.”

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Background of the Crashes

A Boeing 737 Max plane operated by Indonesia’s Lion Air crashed in late October 2018 shortly after take-off, killing all 189 people on board. Just months later, an Ethiopian Airlines plane crashed, killing all 157 passengers and crew. In the 2021 deal, Boeing also agreed to pay $2.5 billion to resolve the matter, including a $243 million criminal penalty and $500 million to a victims’ fund. The deal outraged family members, who were not consulted on the terms and have called for the company to stand trial.

Ongoing Investigations and Lawsuits

Mark Forkner, a former Boeing technical pilot who was the only person to face criminal charges arising from the incident, was acquitted by a jury in 2022. His lawyers had argued he was being used as a scapegoat. The issues with MCAS were not Boeing’s first brush with the law. It has also paid millions in penalties to the Federal Aviation Administration since 2015 to resolve a series of claims of improper manufacturing and other issues. The company also continues to face investigations and lawsuits sparked by the incident on the January Alaska Airlines flight.

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Israel and Hamas Reach Historic Ceasefire and Hostage Release Agreement

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Israel and Hamas Reach Historic Ceasefire and Hostage Release Agreement

U.S. President Joe Biden announced a breakthrough ceasefire agreement between Israel and Hamas, marking the end of 15 months of conflict. Speaking optimistically, Biden declared, “Soon the hostages will return home to their families,” highlighting the monumental nature of the deal.

  • A complete ceasefire will take effect, accompanied by the withdrawal of Israeli forces from Gaza.
  • Hamas will release all hostages, while Israel has agreed to free Palestinian prisoners in return.
  • Qatar’s involvement ensured that provisions for humanitarian aid to Gaza were included in the agreement.

Qatari Prime Minister Sheikh Mohammed Bin Abdulrahman Al-Thani held a news conference in Doha, confirming the details:

  • The deal sets the stage for a long-term truce, with the ceasefire beginning on January 19.
  • Thirty-three Israeli hostages will be freed in the first phase of the agreement, with subsequent phases expected to follow.
  • Qatar emphasized its commitment to delivering aid to Palestinians and fostering adherence to the agreement by both parties.

While the success of the deal beyond the first phase depends on the cooperation of all parties, negotiators have expressed cautious optimism.

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Signs of Progress as Gaza Ceasefire Negotiations Continue in Qatar

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Signs of Progress as Gaza Ceasefire Negotiations Continue in Qatar

Efforts to broker a ceasefire in the Gaza Strip have intensified as negotiators from Israel and Hamas convene in Qatar, with indications that an agreement may be imminent. The talks, mediated by Qatar and supported by U.S. diplomatic efforts, have reached a critical juncture, according to officials familiar with the negotiations.

For the first time in the ongoing conflict, delegations from Israel and Hamas have engaged in indirect discussions within the same building, signaling a significant shift in the dynamics of the talks. Hamas has reportedly softened its stance by dropping the condition for Israeli troops to withdraw entirely from the Gaza Strip before an agreement.

A Palestinian official shared details of the tentative plan, which includes a phased approach to hostilities and hostages:

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  • Hamas is expected to release three hostages immediately upon signing the agreement, with additional releases staggered over the following weeks.
  • Israel would begin a partial withdrawal of troops from populated areas, with phased easing of restrictions on displaced residents.
  • Civilians in southern Gaza would be allowed to return to northern areas via designated routes, monitored by a joint Qatari-Egyptian security team equipped with advanced screening technology.
  • Israeli forces would retain positions in key border areas, including an 800-meter buffer zone, during the initial 42-day phase.

Israel has reportedly agreed to release 1,000 Palestinian prisoners, including long-term detainees, in exchange for 34 hostages held by Hamas. The ceasefire agreement also outlines a roadmap for subsequent phases, with further negotiations slated to begin on the 16th day of the truce.

U.S. President Joe Biden has expressed optimism about the progress, describing the deal as “on the brink” of being finalized. He has been in active communication with Israeli Prime Minister Benjamin Netanyahu and Qatar’s Sheikh Tamim bin Hamad Al-Thani to facilitate the discussions.

The resumption of talks in Qatar marks a critical step toward de-escalating a conflict that has caused immense suffering.

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LA Fires Death Toll Rises to 16 as Evacuation Orders Expand and Health Warnings Intensify

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LA Fires Death Toll Rises to 16 as Evacuation Orders Expand and Health Warnings Intensify

The death toll from the ongoing wildfires in Los Angeles County has risen to 16, as evacuation orders now affect 150,000 residents. The Palisades and Eaton Fires continue to wreak havoc, prompting emergency measures and public health advisories.

According to the California Governor’s Office of Emergency Services (Cal OES), over 700 displaced residents are being sheltered in nine facilities across the county. Evacuation orders remain in effect for areas at immediate risk, while evacuation warnings advise nearby residents to prepare to leave if conditions worsen.

The Kenneth and Hurst Fires have seen progress in containment, allowing authorities to lift evacuation orders and warnings in affected areas.

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In addition to evacuation efforts, officials have issued critical health warnings:

  • Residents in and around Pacific Palisades have been advised not to consume tap water due to potential fire-related contamination. Bottled water is being distributed at the Westwood Recreation Center and near the Brentwood Country Club.
  • The use of power air blowers, including leaf blowers, has been banned countywide to reduce the spread of ash, smoke, and particulates harmful to respiratory health.
  • The public health department has issued warnings against swimming, surfing, or entering ocean waters along a 20-mile stretch from Surfrider Beach to Dockweiler State Beach. Officials caution that these waters may pose health risks to those who come into contact with them.

Amid the crisis, officials have warned against looting in evacuated areas and price hikes at hotels housing displaced residents. Authorities are working to ensure safety and fair treatment for those affected by the disaster.

With containment efforts ongoing and weather conditions remaining unpredictable, authorities urge residents to stay informed and adhere to all evacuation and health advisories. Resources, including shelters and bottled water distributions, will continue to support those impacted by one of Los Angeles County’s most devastating wildfire events in recent history.

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