McCain May Push For Hearing Into Boeing's $615 Million Settlement  By George Cahlink Defense Daily May 17, 2006 Sen. John McCain (R-Ariz.), a senior member of the Senate Armed Services Committee (SASC), said yesterday he might push for a hearing into a $615 million settlement Boeing [BA] just reached with the government to settle a criminal probe and civil claims against the defense contractor. “It may be worth of a hearing,” McCain told reporters yesterday when asked about the settlement that the Justice Department announced on Monday. McCain stressed he was “not judging” the settlement, but said he would discuss holding a hearing about it with SASC Chairman John Warner (R-Va.). Warner declined to comment specifically on the settlement, but told reporters he was saddened by the scandals. Under the deal, Boeing accepted responsibility for the actions of its employees and agreed to pay $615 million in fines, but avoided any criminal charges. The fines include $50 million in criminal penalties and $565 million in civil claims. The money would go to the Air Force and NASA, agencies viewed as subject to the company’s fraud. The settlement stems from the actions of Darleen Druyun, the Air Force’s former top procurement official, who steered contracts to Boeing in exchange for a lucrative job managing their missile programs. Also, the deal settles charges that Boeing stole thousands of documents from Lockheed Martin [LMT] related to the rival’s multibillion rocket programs. The Justice Department could fine Boeing an additional $10 million if a company official engages in criminal conduct over the next two years and the company fails to report it to the government. The settlement may bring to an end a three-year saga that began when McCain first questioned Air Force plans to spend billions of dollars to lease tanker aircraft from Boeing. An investigation found Druyun inflated costs in the deal to favor Boeing and she ended up serving several months in federal prison after admitting she did it in return for job for herself and her daughter. Recently, the Air Force began a competition to build new tanker aircraft rather than pursue a lease. (Archives)