This perspective on the Boeing –Department of Justice Non-Prosecution Agreement that was put into place after the infamous Darlene Druyan/Michael Sears Boeing Tanker Deal Debacle was sent to me by a reader who knows this area of the law well.  Enjoy!  -GFS

 

 

Perspective On The Boeing – Department of Justice Non-Prosecution Agreement

 

The Department of Justice entered into an agreement with The Boeing Company to resolve two entirely separate and serious cases of apparent criminal activity.

 

Both cases involved major offenses against the U.S. government and U.S. taxpayers.  These cases were: 1. Theft of a competitor’s proprietary data; and, 2. A quid-pro-quo arrangement with a government contracting officer to facilitate a substantial overpayment for a questionably needed new Air Force re-fueling tanker.

 

One- In the Evolved Expendable Launch Vehicle (EELV) Program case, Boeing acquired 25,000 pages (or more) of bidding documents from their lone competitor, Lockheed Martin. Boeing then used the information to bid below Lockheed Martin.  So, the government and the taxpayers were cheated out of the benefits of meaningful competition.

 

Two- In the Druyan case, Air Force contracting officer Darlene Druyan admitted to doing “favors” for Boeing. Druyan admitted that she “agreed to a higher price for the aircraft than she believed was appropriate.”  Boeing then hired her.

Boeing got off with a $50 million dollar civil claim and no criminal penalty.  Boeing was not charged with any crimes.  The company avoided all harm to the reputation of the company by a criminal plea (or any charges).  And, Lockheed was not able to use any Boeing admittance to criminal activity in Lockheed’s civil litigation against Boeing.

 

The Boeing Non-Prosecution Agreement is interesting.  First, it settled two entirely separate cases with one Non-Prosecution Agreement.  One factor the Department of Justice (DOJ) was supposed to use in deciding whether to prosecute criminally is whether a company was/is a repeat offender.  Boeing was… the Non-Prosecution Agreement itself involved repeat offenses. Second, is how Boeing’s lawyers were able to restrict what they agreed to.  Under the terms of the Non-Prosecution Agreement, if a non-executive level Boeing employee violates the agreement, that doesn’t count as a violation by Boeing.  And, if an executive commits a violation and the company turns them in that doesn’t count as a violation either.

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