Delta Air Lines Fined $8.1 Million for Payroll Support Program Violations

6 godzin temu

ATLANTA- Delta Air Lines (DL) has agreed to pay $8.1 million to settle allegations it violated the False Claims Act related to its participation in the Payroll Support Program (PSP), administered by the U.S. Department of the Treasury.

The alleged violations occurred while Delta operated from its main hub at Hartsfield–Jackson Atlanta International Airport (ATL), where it submitted compliance reports under the PSP, a pandemic relief program designed to support aviation industry payrolls.

Delta Air Lines $8.1 Million Payroll

Delta Air Lines Inc. (DL) entered into Payroll Support Program agreements in 2020 and 2021, agreeing to federal compensation restrictions in exchange for COVID-19 relief funds.

The PSP was a key provision under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, providing billions in financial aid to support airline workers during the pandemic.

The program, run by the U.S. Department of the Treasury, required recipient airlines to cap compensation for certain employees, particularly those earning over $425,000 per year.

Between March 2020 and April 2023, Delta allegedly breached these limits by awarding excess compensation to some executives and employees.

Additionally, Delta is accused of falsely certifying compliance in its quarterly reports and failing to alert the Treasury once it discovered the breach.

These actions allegedly violated the False Claims Act, which prohibits knowingly submitting false information to obtain federal funds. The $8.1 million settlement aims to resolve these claims without a formal admission of wrongdoing.

Government Response

Assistant Attorney General Brett A. Shumate emphasized the importance of accountability for recipients of pandemic-era federal aid, noting the PSP’s role in stabilizing the airline industry during a national emergency.

US Attorney Theodore S. Hertzberg for the Northern District of Georgia underscored the duty of companies to uphold terms attached to taxpayer funds.

The investigation was conducted by the Justice Department’s Civil Division, the US Attorney’s Office for the Northern District of Georgia, and the Department of the Treasury’s Office of Inspector General.

Treasury Deputy Inspector General Loren Sciurba highlighted the role of criminal investigators in protecting the integrity of Treasury-administered programs.

Whistleblower Claim

The case also involved a whistleblower complaint filed under the False Claims Act’s qui tam provisions by H. Remidez LLC.

This legal mechanism allows private entities to file lawsuits on behalf of the federal government and share in any recovered damages. As part of the settlement, the whistleblower will receive $850,500.

The case, titled United States ex rel. H. Remidez LLC v. Delta Air Lines Inc. was filed in the Northern District of Georgia under docket number 1-23-cv-01116. The settlement resolves civil allegations only, with no determination of liability on Delta’s part.

Moving Forward

This resolution is part of a broader effort by federal agencies to ensure proper use of pandemic relief funds. The Justice Department and the Treasury Inspector General’s Office continue to monitor recipients for compliance and take enforcement actions when necessary.

Trial Attorney James Nealon and Assistant US Attorney Anthony DeCinque led the legal work on behalf of the government.

Stay tuned with us. Further, follow us on social media for the latest updates.

Join us on Telegram Group for the Latest Aviation Updates. Subsequently, follow us on Google News

Delta Using Artifical Intelligence to Price Tickets to Boost Revenue

The post Delta Air Lines Fined $8.1 Million for Payroll Support Program Violations appeared first on Aviation A2Z.

Idź do oryginalnego materiału