US justice department wants Boeing to plead guilty to fraud over fatal crashes, lawyers say

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People stand near collected debris at the crash site of Ethiopia Airlines near Bishoftu, a town some 60 kilometes southeast of Addis Ababa, Ethiopia, on March 11, 2019. (AFP/File)
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The US Justice Department reportedly plans to propose that Boeing plead guilty to fraud in connection with two deadly plane crashes involving its 737 Max jetliners. (AP)
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Updated 01 July 2024
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US justice department wants Boeing to plead guilty to fraud over fatal crashes, lawyers say

  • Boeing will have until the end of the coming week to accept or reject the offer
  • Families of the 346 people who died in the 2018 and 2019 crashes want Boeing to face a criminal trial and to pay a $24.8 billion fine

The US Justice Department is pushing Boeing to plead guilty to criminal fraud in connection with two deadly plane crashes involving its 737 Max jetliners, according to several people who heard federal prosecutors detail a proposed offer Sunday.
Boeing will have until the end of the coming week to accept or reject the offer, which includes the giant aerospace company agreeing to an independent monitor who would oversee its compliance with anti-fraud laws, they said.
The case stems from the department’s determination that Boeing violated an agreement that was intended to resolve a 2021 charge of conspiracy to defraud the US government. Prosecutors alleged at the time that Boeing misled regulators who approved the 737 Max and set pilot-training requirements to fly the plane. The company blamed two relatively low-level employees for the fraud.
The Justice Department told relatives of some of the 346 people who died in the 2018 and 2019 crashes about the plea offer during a video meeting. The family members, who want Boeing to face a criminal trial and to pay a $24.8 billion fine, reacted angrily. One said prosecutors were gaslighting the families; another shouted at them for several minutes when given a chance to speak.
“We are upset. They should just prosecute,” said Massachusetts resident Nadia Milleron, whose 24-year-old daughter, Samya Stumo, died in the second of two 737 Max crashes. “This is just a reworking of letting Boeing off the hook.”

Prosecutors told the families that if Boeing rejects the plea offer, the Justice Department would seek a trial in the matter, meeting participants said. Justice Department officials presented the offer to Boeing during a meeting later Sunday, according to a person familiar with the situation.
Boeing and the Justice Department declined to comment.
The plea deal would take away the ability of US District Judge Reed O’Connor to increase Boeing’s sentence for a conviction, and some of the families plan to ask the Texas judge to reject the deal if Boeing agrees to it.
“The underlying outrageous piece of this deal is that it doesn’t acknowledge that Boeing’s crime killed 346 people,” said Paul Cassell, one of the lawyers for victims’ families. “Boeing is not going to be held accountable for that, and they are not going to admit that that happened.”
Sanjiv Singh, a lawyer for 16 families who lost relatives in the October 2018 Lion Air crash off Indonesia, called the plea offer “extremely disappointing.” The terms, he said, “read to me like a sweetheart deal.”
Another lawyer representing families who are suing Boeing, Mark Lindquist, said he asked the head of the Justice Department’s fraud section, Glenn Leon, whether the department would add additional charges if Boeing turns down the plea deal. “He wouldn’t commit one way or another,” Lindquist said.

The meeting with crash victims’ families came weeks after prosecutors told O’Connor that the American aerospace giant breached the January 2021 deal that had protected Boeing from criminal prosecution in connection with the crashes. The second one took place in Ethiopia less than five months after the one in Indonesia.
A conviction could jeopardize Boeing’s status as a federal contractor, according to some legal experts. The company has large contracts with the Pentagon and NASA.
However, federal agencies can give waivers to companies that are convicted of felonies to keep them eligible for government contracts. Lawyers for the crash victims’ families expect that would be done for Boeing.
Boeing paid a $244 million fine as part of the 2021 settlement of the original fraud charge. The Justice Department is likely to seek another, similar penalty as part of the new plea offer, said a person familiar with the matter who spoke on condition of anonymity to discuss an ongoing to discuss an ongoing case.
The deal would include a monitor to oversee Boeing — but the company would put forward three nominees and have the Justice Department pick one, or ask Boeing for additional names. That provision was particularly hated by the family members on the call, participants said.
The Justice Department also gave no indication of moving to prosecute any current or former Boeing executives, another long-sought demand of the families.
Lindquist, a former prosecutor, said officials made clear during an earlier meeting that individuals – even CEOs – can be more sympathetic defendants than corporations. The officials pointed to the 2022 acquittal on fraud charges of Boeing’s chief technical pilot for the Max as an example.
It is unclear what impact a plea deal might have on other investigations into Boeing, including those following the blowout of a panel called a door plug from the side of a Boeing Max 9 during an Alaska Airlines flight in January.


Houthi shipping attacks pose complex diplomatic challenge to next UK government

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Houthi shipping attacks pose complex diplomatic challenge to next UK government

  • Experts divided on whether change in British policy alone can stop Houthi attacks on shipping
  • Red Sea trade routes disruption has increased shipping costs, delayed supplies to UK

LONDON: Whichever political party forms the next UK government after this week’s general election will face major domestic and international challenges, including the crises in Gaza and the Red Sea. 

Experts who spoke to Arab News emphasized the need for diplomatic solutions and support for Palestinian statehood to address these challenges, as disruption to Red Sea trade routes has increased shipping costs and delayed supplies, impacting UK businesses.

Escalating tensions in the region have already prompted British military action. How the next prime minister chooses to respond will shape international relations and have significant implications for domestic economic stability and public opinion.

While polling suggests a potential Labour majority, ending more than a decade of Conservative rule under five successive prime ministers, including incumbent Rishi Sunak, the political landscape remains complex.

The Labour Party has gained ground in many areas and reclaimed councils it has not held in decades, but has also faced setbacks in key constituencies with large student and Muslim communities.

Britain’s PM and Conservative Party Leader Rishi Sunak delivers a speech during a visit during a general election campaign event in northern England, on July 1, 2024 in the build-up to the UK general election on July 4. (AFP)

These traditionally loyal demographics have voiced a distinct reason for this shift — namely Labour leader Keir Starmer’s response to the Gaza issue.

Desire for a ceasefire is high in Britain. A recent YouGov poll in May found that 69 percent think that Israel should stop and call a ceasefire — about the same as the 66 percent who said so in February. And yet the main political parties have been muted on the issue.

Britain’s Arab citizens have been urged by the Arab Voice campaign to support candidates who best serve Arab and Muslim communities, focusing on those who stand with Gaza.

“The situations in Gaza and Yemen have significantly influenced my decision on whom to vote for in the upcoming election,” Randa Al-Harazi, a British-Yemeni political activist, told Arab News.

“The current government’s departure from British values and principles that uphold human rights has been a pivotal factor. Britain’s strong commitment to human rights was a major reason why I chose to migrate to and settle in this country.”

A woman stands holding a child surrounded by the rubble of buildings destroyed during Israeli bombardment in Khan Yunis on the southern Gaza Strip on June 23, 2024.

Escalating international pressure for a Gaza ceasefire has led to huge protests across the UK, notably mobilized by the Palestine Solidarity Campaign.

While the general election campaigns of the main parties have primarily focused on domestic issues, the incoming prime minister will have to address the escalating tensions in the Middle East, exacerbated by the Gaza conflict between Israel and Hamas.

Non-state actors within the Iran-led “Axis of Resistance” have launched attacks against British ally Israel, ostensibly in solidarity with Hamas and the broader Palestinian cause, posing a threat to global trade security.

The next prime minister will need to decide whether to continue or reconsider the UK’s involvement amid broader regional instability.

The Houthis have attacked multiple vessels off Yemen’s coast in protest against Western support for Israel in its war in Gaza. (AFP)

As part of the Axis of Resistance, the Houthi militia in Yemen — also known as the Ansar Allah — has responded to the Gaza war by targeting Israeli interests. It has launched rocket and drone attacks in the Red Sea and Gulf of Aden, initially focusing on cargo ships suspected of having links to Israel.

Simon Mabon, professor of international politics and director of the SEPAD peace and conflict research center at Lancaster University, says advocating for a ceasefire in Gaza and enduring peace in the Occupied Palestinian Territories is of critical importance.

“The Houthis have capitalized on the devastation in Gaza and articulated a clear stance in support of the Palestinian cause,” he told Arab News. “A ceasefire would go some way in undermining this approach, though Houthi attacks have been far wider than just Israeli targets.” 

In response to Houthi attacks on shipping, the US and UK have launched multiple counterstrikes, targeting the militia’s coastal radar installations, unmanned aerial vehicles, surface vessels, weapons storage facilities, missile launch sites and other military assets to degrade their capability to continue attacks.

Despite these efforts, the Houthi militia has vowed to continue attacks and to retaliate against the US and UK. Its latest statements emphasize ending the Gaza war as a primary objective of its attacks while also speaking of avenging its fighters killed in US and UK attacks.

A grab from handout footage released by the Houthis on November 19, 2023, reportedly shows members of the group during the capture of an Israel-linked cargo vessel at an undefined location in the Red Sea. (AFP)

Baraa Shiban, an associate fellow with the London-based Royal United Services Institute, says that despite the UK government’s decision to join the US in protecting shipping lanes, the Yemenis had long foreseen and warned about this eventuality.

“The Red Sea problem, although it is a maritime issue, is primarily a land problem,” Shiban told Arab News. “It stems from the international community’s inability to recognize the importance of a properly functioning state in Yemen.”

Shiban says that the crisis in Yemen has often been treated purely as a humanitarian issue, with a focus on feeding the population. But, according to him, this approach overlooks the underlying problem — the Houthi insurgency that hinders the state’s functionality.

“To ensure maritime security, it is crucial to address the land-based security issues,” he said. “This requires a fresh strategy for engaging with Yemeni parties to help them rebuild stable and effective institutions.”

Protesters hold placards and wave Palestinian flags as they gather in Parliament Square, central London, on June 8, 2024. (AFP)

Instability in Yemen worsened in 2014 when Houthi insurgents took control of Yemen’s capital, Sanaa, forcing the internationally backed government to go into exile in Saudi Arabia in 2015. 

“Greater attention must be paid to the Houthis as a critical issue to be addressed,” said Shiban. “The Houthis pose a significant threat, and this problem is likely to persist for a long time.”

Many Yemenis are sympathetic to the Palestinian cause and highly critical of Israel’s assault on Gaza, which has boosted public support for the Houthi militia. Large demonstrations in cities, both within and outside Houthi-controlled areas, such as Taiz, reflect this widespread sentiment. 

“The support for the Houthis has grown dramatically as a result of their actions, despite the group’s deeply hostile actions in Yemen,” said Mabon. “Taking a firm stance in support of Palestinian statehood is essential.”

Many Yemenis are sympathetic to the Palestinian cause and highly critical of Israel’s assault on Gaza, which has boosted public support for the Houthi militia. (AFP)

The Houthi militia has been able to use this to bolster military recruitment in the regions it controls, aiding its struggle against Yemen’s internationally recognized government and associated armed factions.

Abdulaziz Al-Qadmi, a Yemeni political analyst based in Houthi-controlled Sanaa, believes that the group’s support for the Palestinian cause will continue until Western nations, including the UK, cease their backing of the Israeli government.

“The British government and its Western allies must recognize the high costs of waging war against the Palestinian resistance,” said Al-Qadmi.

“If the UK and US persist in their unlawful assaults on Yemen, they should expect retaliation. Previously, Ansar Allah targeted only ships bound for Israel, but now UK and US vessels will also be vulnerable to attacks.” 

He added: “This fact is a critical consideration for any new UK government. The cycle of violence will only end when the US and UK halt their military operations in Yemen, as their current strategy is proving unsuccessful.”

INNUMBERS

  • 10 Number of additional days it takes for ships to traverse southern Africa to avoid the Red Sea route.
  • 55 percent British Chambers of Commerce exporter members feeling the direct impact of the Red Sea crisis.
  • 300 percent Reported increase in the price of container hire, while delivery times have extended by 4 weeks.
  • 70 percent Proportion of Europe’s car parts shipped through the Red Sea from Asia, which now face disruption.

The strategic importance of the Red Sea in global supply chains has been severely disrupted by Houthi missile and drone attacks, with 107 recorded incidents since the hijacking of the Galaxy Leader on Nov. 19. 

“The Red Sea is central in global supply chains and global trade routes, and disturbances in these supply chains and trade routes can have global reverberations,” Lancaster University’s Mabon said.

Due to these attacks, many shipping companies have opted to avoid the Red Sea, diverting vessels onto the safer but much longer and more costly route around the tip of southern Africa, passing the Cape of Good Hope.

This detour can add 10 days to a journey and increase fuel costs by 40 percent. A British Chambers of Commerce survey in February found that 55 percent of its exporter members have felt the direct impact of the Red Sea crisis. Some reported price rises of 300 percent for container hire and delivery times extended by four weeks.

Manufactured goods from Asia, especially cars, have been the hardest hit. About 70 percent of Europe’s car parts are shipped through the Red Sea from Asia. Due to the disruption, carmakers such as Volvo and Tesla have had to suspend some production lines because of a lack of parts.

Some companies are realigning their supply chains to cope with these challenges. Retailers such as Asos and Boohoo have increased nearshoring, sourcing more products from countries such as Turkiye and Morocco, as well as within the UK.

This handout grab of a video by the French ‘Etat-Major des Armees’ shows a Houthi UAV threatening commercial navigation prior to its destruction by a French army helicopter in the Red Sea on March 20, 2024. (AFP)

This shift helps them to avoid the longer lead times and inflated prices associated with rerouting shipments from Asia.

Extended shipping routes are driving up container freight expenses, approaching levels seen during the pandemic, according to a recent Geopolitical Monitor report.

These escalating costs are expected to trickle down to consumers, given that rising shipping expenses will persistently push prices upward in the short term, the report said. 

Short of a diplomatic solution, the geopolitical risks presented by the Houthi militia are set to increase. “A military solution is not the way forward in addressing the Red Sea crisis,” said Mabon.

“The UK’s influence alone is limited, but as penholder at the UN Security Council, it does have some influence. While the UK has called for an ‘inclusive peace under UN auspices,’ the need for a diplomatic solution that reflects realities on the ground is imperative.”

 


Trump hush money sentencing delayed due to immunity decision

Updated 19 min 36 sec ago
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Trump hush money sentencing delayed due to immunity decision

  • The sentencing had previously been set for July 11
  • Trump faces an uphill battle getting the hush money conviction overturned

NEW YORK/WASHINGTON: A New York judge on Tuesday delayed Donald Trump’s sentencing for his conviction on criminal charges stemming from hush money paid to a porn star until Sept. 18, after the former US president asked for a chance to argue he should have been immune from prosecution.
The sentencing had previously been set for July 11, just days before the Republican National Convention begins in Milwaukee on July 15. The new timeline means Trump will likely have been nominated by his party to challenge Democratic President Joe Biden by the time he is sentenced. Justice Juan Merchan will now decide Trump’s punishment, including whether to jail him, in the thick of the general election campaign ahead of the Nov. 5 election.
Trump faces an uphill battle getting the hush money conviction overturned, since much of the conduct at issue in the case predated his time in office. Trump’s lawyers on Monday asked Merchan to allow them to argue his conviction in New York state court in Manhattan should be overturned due to the US Supreme Court’s ruling on July 1 that presidents are entitled to immunity from criminal prosecution for official acts. Prosecutors with Manhattan District Attorney Alvin Bragg’s office said earlier on Tuesday that Trump’s argument was “without merit,” but agreed to delay the sentencing to give Trump the chance to make his case. In a written ruling, Merchan said he would rule on Trump’s request by Sept. 6, with sentencing to follow less than two weeks later should the judge decide to uphold the conviction. Trump’s lawyers must submit their arguments by July 10, and prosecutors face a July 24 deadline to respond. A Manhattan jury on May 30 found Trump guilty of falsifying business records to cover up his former lawyer Michael Cohen’s $130,000 payment to adult film actress Stormy Daniels to stay quiet about an alleged 2006 sexual encounter until after the 2016 election, in which Trump defeated Democrat Hillary Clinton.
Prosecutors said the payment was part of an illicit scheme to influence the election. Trump denies having had sex with Daniels and has vowed to appeal the conviction after his sentencing.

’A PURELY PERSONAL ITEM’
In their letter to Merchan, defense lawyers argued that prosecutors had presented evidence involving Trump’s official acts as president, including social media posts he made and conversations he had while in the White House.
Under the Supreme Court’s ruling, prosecutors cannot use evidence related to official actions to help prove criminal cases involving unofficial actions.
“This official-acts evidence should never have been put before the jury,” lawyers Todd Blanche and Emil Bove wrote. Last year, Trump made a similar argument as part of an unsuccessful push to move the hush money case to federal court. In denying Trump’s request in July 2023, US District Judge Alvin Hellerstein wrote that the payment to Daniels “was a purely personal item.”
“Hush money paid to an adult film star is not related to a president’s official acts,” Hellerstein wrote.
Trump’s lawyers appealed Hellerstein’s decision, but later abandoned the effort.


A stampede at a religious event in India has killed at least 60 people

Updated 02 July 2024
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A stampede at a religious event in India has killed at least 60 people

  • Stampede occurred when thousands rushed to leave makeshift tent following event with Hindu figure Bhole Baba
  • Deadly stampedes are relatively common around Indian religious festivals, where large crowds gather in small areas

LUCKNOW, India: A stampede among thousands of people at a religious gathering in northern India killed at least 60 and left scores injured, officials said Tuesday, adding the toll could rise.
Attendees had rushed to leave the makeshift tent following an event with Hindu figure Bhole Baba, local media reported. Video of the aftermath showed the structure appeared to have collapsed. Women wailed over the dead.
Deadly stampedes are relatively common around Indian religious festivals, where large crowds gather in small areas with shoddy infrastructure and few safety measures.
Police officer Rajesh Singh said overcrowding may have been a factor in the stampede in a village in Hathras district of Uttar Pradesh state, about 350 kilometers (220 miles) southwest of the state capital, Lucknow.
Initial reports suggested that over 15,000 people had gathered for the event, which had permission to host about 5,000.
“People started falling one upon another, one upon another. Those who were crushed died. People there pulled them out,” witness Shakuntala Devi told the Press Trust of India news agency.
Bodies were brought to hospitals and morgues by trucks and private vehicles, government official Matadin Saroj said. Government official Ashish Kumar told The Associated Press that at least 60 had reached mortuaries in the district.
More than 150 people were admitted to hospitals, medical official Umesh Tripathi said.
Uttar Pradesh’s chief minister, Yogi Adityanath, called the stampede “extremely sad and heart-wrenching” in a post on social media platform X. He said authorities were investigating the cause.
In 2013, pilgrims visiting a temple for a popular Hindu festival in central Madhya Pradesh state trampled each other amid fears that a bridge would collapse. At least 115 were crushed to death or died in the river.
In 2011, more than 100 Hindu devotees died in a crush at a religious festival in the southern state of Kerala.


Man convicted of terrorism offense for planning attack on UK military base

Mohammad Farooq was found guilty of preparing acts of terrorism following a trial at Sheffield Crown Court, in northern England.
Updated 02 July 2024
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Man convicted of terrorism offense for planning attack on UK military base

  • Farooq was arrested outside St. James’s Hospital in Leeds, where he had previously worked as a student nurse
  • Police who attended the scene discovered in Farooq’s bag a pressure cooker with wires attached

LONDON: A British man was convicted on Tuesday of planning an attack on a military base after being arrested with an explosive device in the grounds of a hospital, Britain’s Crown Prosecution Service said.
Mohammad Farooq was found guilty of preparing acts of terrorism following a trial at Sheffield Crown Court, in northern England.
The 28-year-old had previously pleaded guilty to possession of an explosive substance with intent to endanger life, possession of an explosive substance in suspicious circumstances, possession of information likely to be useful to a terrorist, and other offenses.
Farooq was arrested outside St. James’s Hospital in Leeds, where he had previously worked as a student nurse, after showing a member of the public a gun and saying he “felt like killing everyone,” the CPS said.
Police who attended the scene discovered in Farooq’s bag a pressure cooker with wires attached, which bomb disposal experts found to be a viable explosive device.
The CPS said Farooq’s electronic devices revealed evidence of his interest in extremist ideology and research into RAF Menwith Hill, a nearby Royal Air Force base in North Yorkshire.
Farooq had pleaded not guilty to but was convicted of preparing a terrorist attack at RAF Menwith Hill. He will be sentenced at a later date.
Bethan David, head of the CPS Counter Terrorism Division, said in a statement: “Farooq is an extremely dangerous individual who amassed a significant amount of practical and theoretical information that enabled him to produce a viable explosive device.
“He then took that homemade explosive device to a hospital where he worked with the intention to cause serious harm. Examination of his electronic devices revealed a hatred toward his colleagues at work and those he considered non-believers.
“It is clear from his Internet searches that he was also conducting extensive research of RAF Menwith Hill, with a view to launching a potential attack.”


Indian worker’s employer arrested for murder in Italy

Updated 02 July 2024
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Indian worker’s employer arrested for murder in Italy

  • Antonello Lovato was arrested for second degree murder over the death of Satnam Singh
  • “If the Indian, who died due to copious blood loss, had been promptly helped, he would in all likelihood have been saved,” the Latina prosecutors’ office said

ROME: Italian police Tuesday arrested the employer of an Indian farm laborer who was left on the road to die after a work accident that severed his arm and crushed his legs.
Antonello Lovato was arrested for second degree murder over the death of Satnam Singh, who was injured while working on a farm in Latina, a rural area south of Rome where tens of thousands of Indian farmhands work.
“If the Indian, who died due to copious blood loss, had been promptly helped, he would in all likelihood have been saved,” the Latina prosecutors’ office said, citing a medical examiner.
Singh, who was 31 and working without legal papers, had his arm sliced off by a machine which also crushed his legs.
Lovato then dumped Singh and his wife on the roadside, along with the severed limb in a box, according to trade unions who are supporting Singh’s widow.
“The worker’s condition after the accident was so serious as to make the need for prompt assistance clear,” the prosecutors’ office said.
Prosecutors said an ongoing investigation would continue into working conditions on the farm.
Undocumented workers in the region where the farm is located are paid an average of 20 euros ($21) a day for up to 14 hours labor, according to the Osservatorio Placido Rizzotto, which analyzes conditions in the agriculture industry.
Italy’s financial police identified nearly 60,000 undocumented workers from January 2023 to June 2024.
But Italy’s largest trade union CGIL estimates that as many as 230,000 people — over a quarter of the country’s seasonal agricultural workers — do not have a contract.