EI321
Topic Author
Posts: 4788
Joined: Tue Jul 07, 2009 4:43 pm

Boeing Pays For Dropping Of Criminal Investigation

Wed May 17, 2006 5:21 am

Came across this today:

http://www.baltimoresun.com/business....story?coll=bal-business-headlines

''Boeing Co. has reached a tentative settlement of two separate federal criminal investigations into its defense business, agreeing to pay $615 million to the government, senior Justice Department officials confirmed yesterday.''

Whatever it is, they sure dont want it found out.

[Edited 2006-05-16 22:34:11]
 
kaneporta1
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RE: Boeing Pays For Dropping Of Criminal Investigation

Wed May 17, 2006 6:49 am

I think $615m is how much it costs to transfer composite structures technology from military programs to a certain civil progam...
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EI321
Topic Author
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RE: Boeing Pays For Dropping Of Criminal Investigation

Wed May 17, 2006 7:20 am

I dont get it, what could be worth spending $615m to cover up???
 
Lumberton
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RE: Boeing Pays For Dropping Of Criminal Investigation

Wed May 17, 2006 7:48 am

Quote:
Boeing's legal troubles date to 2003, when the company was suspended from launching military rockets because it had in its possession thousands of proprietary documents from rival Lockheed Martin during bidding on the launch contracts.
The suspension was expected to be temporary, but it lasted almost two years as Boeing became involved in a second scandal over a $24 billion Air Force contract for aerial refueling tankers. That contract was thrown out by Congress in 2004 after a former Air Force procurement official, Darleen Druyun, admitted she had increased the price as a "parting gift" to Boeing, where she went to work after retiring.

All the references I read to this indicate that Boeing will just pay and not admit to guilt. ("nolo contendere", I guess  Wink ) The market has already factored the settlement into the price of the stock and I understand that the JV with Lockheed on launch contracts has removed most of the civil liability. Boeing needs to get this behind them; it could have been far worse.
"When all is said and done, more will be said than done".
 
atmx2000
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Joined: Wed Oct 13, 2004 4:24 pm

RE: Boeing Pays For Dropping Of Criminal Investigation

Wed May 17, 2006 1:42 pm

Quoting EI321 (Reply 2):
I dont get it, what could be worth spending $615m to cover up???

The money is partially a reimbursement and partially a penalty for defrauding the US government and violating DoD procurement rules.

Boeing's payments of $565 million for civil claims and $50 million to settle criminal investigations represent the approximate cost to taxpayers and the government of Boeing's activities, Justice Department officials said.

Boeing can pay up now and avoid the trial and its costs or it can try and fight the government in court in which case it will lose because the misdeeds have been well documented and pay far more in terms of money and bad publicity and possibily criminal charges and sanctions.

Quoting Kaneporta1 (Reply 1):
I think $615m is how much it costs to transfer composite structures technology from military programs to a certain civil progam...

No, it has to do with a series of procurement scandals involving bribery of DoD procurement personnel and misusing information obtained from former employees of competitors to help win DoD contracts.
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