More stories

  • in

    Criminal Inquiry Into Boeing Panel Blowout Expands

    The Justice Department, which is investigating the blowout of a panel on an Alaska Airlines flight, is using a recently convened grand jury in Seattle.The Justice Department is sending subpoenas and using a recently convened grand jury in Seattle as it widens a criminal investigation into the door plug that blew off a Boeing 737 Max 9 jetliner in January, a person familiar with the matter said on Friday.The detachment of the panel from the fuselage of an Alaska Airlines flight shortly after takeoff terrified passengers at 16,000 feet and required an emergency landing back at Portland International Airport in Oregon. A preliminary report by the National Transportation Safety Board said four bolts meant to secure the door plug in place were missing before the panel blew off.This month, it was reported that the Justice Department had opened a criminal investigation of Boeing, which had reinstalled the door plug during maintenance in Renton, Wash., before delivering the plane to Alaska Airlines in October.The subpoenas and use of the grand jury were reported earlier Friday by Bloomberg.The midair incident on Jan. 5 led the Federal Aviation Administration to ground more than 170 Max 9 planes, which were then inspected for construction flaws. Boeing said it agreed with the F.A.A.’s decision and pledged to cooperate. The company has said safety is its top priority.The Max 9s have since restarted flights, but questions remain about the malfunction. A grand jury could be asked to decide whether a criminal prosecution is warranted. A likely focus would be repairs to the Alaska Airlines plane’s rivets, which are often used to join and secure parts on planes, by workers at the Boeing plant in Renton.The episode has brought a fresh round of scrutiny to Boeing. The company made grim headlines in 2018 and 2019 when two crashes of another 737 model, the Max 8, killed 346 people. Max 8 jets were grounded for almost two years. The company subsequently spent more than $2.5 billion to settle a criminal charge that Boeing had defrauded the F.A.A., and the company’s chief executive, Dennis Muilenburg, was fired.Under his replacement, Dave Calhoun, Boeing’s stock has risen, though the company has struggled to meet airlines’ demands. Production of the 737 Max fell to about half of Boeing’s stated goals last year, as the company was bedeviled by supply chain issues with key suppliers and problems with fuselages.Now, the company is facing far steeper challenges. Two days after the door plug incident, Mr. Calhoun sent a memo to employees stating that “while we’ve made progress in strengthening our safety management and quality control systems and processes in the last few years, situations like this are a reminder that we must remain focused on continuing to improve every day.” More

  • in

    Poised and Precise, Hur Enters Fray Over Special Counsel’s Report on Biden

    Robert K. Hur defended himself in the unhurried, forceful cadence of a veteran prosecutor, delivering his responses in a flat, matter-of-fact tone.The former special counsel Robert K. Hur, denounced by Democrats for his unsparing description of President Biden’s memory lapses, had one of his own during his testimony on Tuesday before the House Judiciary Committee.Representative James R. Comer, a Kentucky Republican, made passing reference to Dana A. Remus, a Democratic lawyer who had served as White House counsel under Mr. Biden from January 2021 to July 2022.Mr. Hur crinkled an eyebrow and corrected him: No, he said, she occupied that post under President Obama.The misstep was an isolated moment in an otherwise poised and precise appearance by Mr. Hur, 51, who was testifying about his report on the investigation into Mr. Biden’s handling of classified documents.Mr. Hur, a Trump-era Justice Department official known among former colleagues for keeping a cool head in high-stress, high-stakes situations, incited a furor after describing the president as a “well-meaning, elderly man with a poor memory.” A transcript of his five-hour interview with Mr. Biden, released just before his appearance, raised questions about that characterization.Before his work as special counsel, Mr. Hur, a graduate of Stanford Law School who clerked for Chief Justice William H. Rehnquist, was best known for his 11-month stint as the top aide to the deputy attorney general, Rod Rosenstein, in 2017 and 2018. It was a time of extraordinary upheaval, when Mr. Rosenstein oversaw the installment of a special counsel, Robert S. Mueller III, to investigate President Donald J. Trump’s dealings with Russia. Both men lived under the constant threat of being fired by Mr. Trump, who saw the appointment as a personal betrayal.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

  • in

    Boeing Subject of Criminal Inquiry by DOJ

    The investigation is tied to an incident on an Alaska Airlines flight in early January. Boeing also told a Senate panel that it cannot find a record of the work done on the Alaska plane.The Justice Department has begun a criminal investigation into Boeing after a panel on one of the company’s planes blew out on an Alaska Airlines flight in early January, a person familiar with the matter said.The airline said it was cooperating with the inquiry. “In an event like this, it’s normal for the D.O.J. to be conducting an investigation,” Alaska Airlines said in a statement. “We are fully cooperating and do not believe we are a target of the investigation.” Boeing had no comment.On Jan. 5, a panel on a Boeing 737 Max 9 jet operated by Alaska Airlines blew out in midair, exposing passengers to the outside air thousands of feet above ground. There were no serious injuries resulting from that incident, but it could have been catastrophic had the panel blown out minutes later, at a higher altitude.The panel is known as a “door plug” and is used to cover a gap left by an unneeded exit door. A preliminary investigation by the National Transportation Safety Board suggested that the plane may have left Boeing’s factory without the plug bolted down.The criminal investigation was first reported by The Wall Street Journal.The Justice Department has previously said it was reviewing a 2021 settlement of a federal criminal charge against the company, which stemmed from two fatal crashes aboard its 737 Max 8 plane. Under that agreement, Boeing committed to paying more than $2.5 billion, most of it in the form of compensation to its customers. The Justice Department agreed to drop the charge accusing Boeing of defrauding the Federal Aviation Administration by withholding information relevant to its approval of the Max. It was not immediately clear if the criminal investigation was related to the review of the 2021 settlement or a separate inquiry.The deal was criticized for being too lenient on Boeing and for having been reached without consulting the families of the 346 people killed in those crashes. The first occurred in Indonesia in late 2018. After the second in Ethiopia in early 2019, the Max was banned from flying globally for 20 months. The plane resumed service in late 2020 and has since been used in several million flights, mostly without incident — until the Alaska Airlines flight on Jan. 5.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

  • in

    Prosecutors Charge Man With Firing Shots Outside the Capitol on Jan. 6

    The charges once again laid bare one of the most persistent myths about the attack promoted by pro-Trump politicians and media figures: that none of the rioters were armed.A Trump supporter who prosecutors say fired a pistol into the air on the grounds of the Capitol as a mob stormed the building on Jan. 6, 2021, was charged on Friday with firearm offenses, trespassing and interfering with law enforcement officers during a civil disorder.The man, John Banuelos, fired at least two shots into the air while standing above the crowd on scaffolding on the west side of the Capitol, according to a criminal complaint unsealed in Federal District Court in Washington. It does not appear that Mr. Banuelos entered the Capitol. But before the shots were fired, prosecutors say, he posed for a photo wearing a “Trump 2020” cowboy hat and showing off a pistol tucked into his waistband.One of the most persistent lies about the Capitol attack — often made by Republican politicians and right-wing media figures — is that none of the hundreds of rioters who stormed the building had guns. On Thursday night, former President Donald J. Trump repeated the false claim on social media while responding to remarks about Jan. 6 that President Biden had made during his State of the Union address.“The so-called ‘Insurrectionists’ that he talks about had no guns,” Mr. Trump wrote. “They only had a Rigged Election.”But the Justice Department’s sprawling investigation of Jan. 6 has revealed that several people at the Capitol were carrying firearms that day. Altogether, more than 1,300 rioters have been charged in connection with the attack and arrests continue almost daily.A photo used in a Justice Department criminal complaint, showing a Jan. 6 rioter prosecutors identified as John Banuelos with a gun in his waistband.Justice DepartmentGuy Wesley Reffitt, a militiaman from Texas, was wearing a pistol on his hip when he led a charge of rioters up a staircase on the west side of the Capitol, according to testimony at his trial — the first of dozens to have taken place in Washington connected to the events of Jan. 6. Mr. Reffitt was ultimately convicted of a gun charge and other felonies and was sentenced to more than seven years in prison.Among the other rioters who were carrying firearms on Jan. 6 are Christopher Alberts, a former Virginia National Guard member who charged the police outside the Capitol with a loaded 9-millimeter pistol, prosecutors say. Mr. Alberts was convicted of multiple felony charges and sentenced to seven years in prison.A rioter named Mark Mazza brought two guns to the Capitol — a .40-caliber semiautomatic pistol and a Taurus revolver loaded with shotgun shells and hollow-point bullets, prosecutors say. Mr. Mazza was sentenced to five years in prison.Prosecutors did not identify what type of pistol Mr. Banuelos was carrying on Jan. 6, but they said in their complaint that he was not licensed to have it. Among the charges he faces are carrying and discharging a firearm on the Capitol grounds.After firing the shots, prosecutors said, Mr. Banuelos slipped the weapon back into his waistband, climbed down from the scaffolding and rejoined the crowd. More

  • in

    Chinese National Accused of Stealing AI Secrets From Google

    Linwei Ding, a Chinese national, was arrested in California and accused of uploading hundreds of files to the cloud.A Chinese citizen who recently quit his job as a software engineer for Google in California has been charged with trying to transfer artificial intelligence technology to a Beijing-based company that paid him secretly, according to a federal indictment unsealed on Wednesday.Prosecutors accused Linwei Ding, who was part of the team that designs and maintains Google’s vast A.I. supercomputer data system, of stealing information about the “architecture and functionality” of the system, and of pilfering software used to “orchestrate” supercomputers “at the cutting edge of machine learning and A.I. technology.”From May 2022 to May 2023, Mr. Ding, also known as Leon, uploaded 500 files, many containing trade secrets, from his Google-issued laptop to the cloud by using a multistep scheme that allowed him to “evade immediate detection,” according to the U.S. attorney’s office for the Northern District of California.Mr. Ding was arrested on Wednesday morning at his home in Newark, Calif., not far from Google’s sprawling main campus in Mountain View, officials said.Starting in June 2022, Mr. Ding was paid $14,800 per month — plus a bonus and company stock — by a China-based technology company, without telling his supervisors at Google, according to the indictment. He is also accused of working with another company in China.Mr. Ding openly sought funding for a new A.I. start-up company he had incorporated at an investor conference in Beijing in November, boasting that “we have experience with Google’s 10,000-card computational power platform; we just need to replicate and upgrade it,” prosecutors said in the indictment, which was unsealed in San Francisco federal court.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

  • in

    Southern Baptists Say Justice Dept. Has Closed Abuse Inquiry Into Leadership Body

    A Southern Baptist Convention leader said federal investigators had informed the executive committee that there would be no charges against it.A Southern Baptist Convention leader said on Wednesday that the Justice Department had concluded a sexual abuse investigation into the organization’s executive committee without issuing any charges.The statement from Jonathan Howe, the executive committee’s interim president and chief executive, referred only to the closing of an investigation into the executive committee, and did not address additional Justice Department investigations into other Southern Baptist entities. A spokesman for the U.S. Attorney’s Office for the Southern District of New York, Nicholas Biase, declined to comment.Federal investigators opened the inquiry into the denomination’s handling of sexual abuse in 2022, after Baptists commissioned a third-party investigation that found national leaders in the country’s largest Protestant denomination had suppressed reports of abuse and resisted reform efforts for decades. The report prompted widespread outrage from Baptist churchgoers, and energized activists pushing the denomination for greater transparency.The S.B.C.’s executive committee, a group of 86 people who steer the denomination, said it was informed last week that the U.S. Attorney’s office had concluded its investigation “with no further action to be taken,” Mr. Howe said in the statement.“While we are grateful for closure on this particular matter, we recognize that sexual abuse reform efforts must continue to be implemented across the convention,” he said.When the investigation began, leaders in the denomination said the Justice Department was looking into “multiple S.B.C. entities,” a category that includes seminaries, missionary organizations and the denomination’s public policy arm. The leaders said at the time that they would cooperate fully.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

  • in

    JetBlue and Spirit Call Off Their Merger

    JetBlue said it would pay Spirit $69 million to terminate the $3.8 billion deal, which had been blocked by federal antitrust regulators.JetBlue Airways and Spirit Airlines announced on Monday that they would walk away from their planned $3.8 billion merger after federal antitrust regulators successfully challenged the deal in court. JetBlue said it would pay Spirit $69 million to exit the deal.A federal judge in Boston blocked the proposed merger on Jan. 16, siding with the Justice Department in determining that the merger would reduce competition in the industry and give airlines more leeway to raise ticket prices. The judge, William G. Young of the U.S. District Court for the District of Massachusetts, noted that Spirit played a vital role in the market as a low-cost carrier and that travelers would have fewer options if JetBlue absorbed it.“We are proud of the work we did with Spirit to lay out a vision to challenge the status quo, but given the hurdles to closing that remain, we decided together that both airlines’ interests are better served by moving forward independently,” JetBlue’s chief executive, Joanna Geraghty, said in a statement on Monday. “We wish the very best going forward to the entire Spirit team.”JetBlue and Spirit appealed Judge Young’s decision. JetBlue filed an appellate brief last week arguing that the deal should be allowed to go through.But in a regulatory filing on Jan. 26, JetBlue said it might terminate the deal. Spirit said in its own filing the same day that it believed “there is no basis for terminating” the agreement.The merger agreement, which expired on Jan. 28, could have been extended to July 24 if certain conditions were met. But JetBlue suggested in its filing in January that Spirit had not met some of its obligations under the agreement, giving JetBlue the ability to walk away.As part of the merger agreement, JetBlue agreed to pay Spirit and its shareholders $470 million in fees if the deal was blocked. Some legal experts said JetBlue was potentially positioning itself to dispute the remainder of those fees by terminating the agreement.Spirit is heavily indebted and last turned a profit before the Covid-19 pandemic. Investors see a merger as a lifeline for the company. Its stock price has lost more than half its value since the ruling blocking the merger.JetBlue’s stock nudged up on the same news, as investors see the end of the deal as a cost-saving measure.A merger of the airlines would have given the combined company a bigger share of the market, which is dominated by four carriers — American Airlines, Delta Air Lines, Southwest Airlines and United Airlines.Alaska Airlines has also announced plans to increase its size. In December, it said it wanted to acquire Hawaiian Airlines for $1.9 billion. That deal, too, is likely to attract the scrutiny of federal antitrust regulators. More

  • in

    Judge Rules Against Corporate Transparency Act Disclosure Provision

    An Alabama judge barred the government from collecting certain company ownership data to help the Treasury Department identify money launderers, and called the effort a case of congressional overreach.In a blow to government efforts to combat money laundering, a federal court has ruled that the Treasury Department cannot require some small businesses to report personal details about their owners.Under a section of a 2020 law that took effect Jan. 1, small businesses must share details about their so-called beneficial owners, individuals who hold financial stakes in a company or have significant power over their business decisions. The law, the Corporate Transparency Act, passed with bipartisan support in Congress and was intended to help the Treasury Department’s financial-crimes division identify money launderers who hide behind shell corporations.But in a ruling issued late Friday, Judge Liles C. Burke of the U.S. District Court in Huntsville, Ala., sided with critics of the law. They argue that asking a company’s owners to present personal data — names, addresses and copies of their identification documents — was a case of congressional overreach, however well intended.“Congress sometimes enacts smart laws that violate the Constitution,” Judge Burke wrote in a 53-page filing. “This case, which concerns the constitutionality of the Corporate Transparency Act, illustrates that principle.”Judge Burke’s ruling prevented the department from enforcing the ownership reporting requirements on the plaintiff in the Alabama case, the National Small Business Association, a nonprofit trade group that represents more than 65,000 member companies.Lawyers who have followed the Alabama case said over the weekend that they expected the government to quickly request that the injunction be paused, either by Judge Burke or the 11th Circuit Court of Appeals in Atlanta, or both. The Justice Department will almost certainly appeal the Alabama case to the circuit court, the lawyers said.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More