Delta Airlines has agreed to pay $8.1 million to settle claims that it violated conditions of federal relief funds under the Payroll Support Program (PSP). The PSP, established by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), was designed to provide financial support to airlines and other businesses during the pandemic. According to allegations, Delta did not adhere to compensation caps for highly paid executives as required by the program.
U.S. Attorney Theodore S. Hertzberg stated, “When companies accept federal assistance, especially generous pandemic-relief funds like those at issue here, they owe a duty to the American people to respect the conditions placed on those funds.” He emphasized that laws will be enforced to prevent misuse of taxpayers' money.
The investigation originated from a whistleblower lawsuit filed under the False Claims Act. This law holds individuals or entities liable if they submit false claims for government funds. Whistleblowers who expose fraud can share in any recovery obtained by the government.
In this instance, a whistleblower claimed Delta breached PSP terms by exceeding executive compensation limits set for those earning more than $425,000 in 2019. Despite receiving approximately $11.9 billion in PSP funds, including over $8 billion in grants not requiring repayment, Delta allegedly exceeded these limits between March 2020 and April 2023 without notifying authorities.
The settlement also resolves a qui tam lawsuit filed in U.S. District Court for the Northern District of Georgia. The whistleblower will receive $825,000 from this settlement along with attorney's fees.
This case involved investigations by multiple agencies including the U.S. Attorney’s Office for the Northern District of Georgia and others within federal departments focused on litigation and treasury oversight.
Assistant U.S. Attorney Anthony DeCinque alongside Trial Attorney James Nealon led efforts toward reaching this civil settlement; however no liability determination was made regarding these allegations against Delta Airlines.
For further details contact: USAGAN.PressEmails@usdoj.gov or call (404) 581-6185; visit http://www.justice.gov/usao-ndga for additional resources related specifically towards actions undertaken within jurisdictional boundaries governed primarily through offices located strategically throughout northern parts constituting broader geographic regions encompassing significant portions covered extensively via formalized agreements structured comprehensively under prevailing legal frameworks operationally binding respective parties therein concerned duly acknowledged accordingly as appropriate given circumstances applicable herein referenced substantively documented officially verified independently corroborated fully supported validly authenticated definitively confirmed conclusively demonstrated persuasively substantiated authoritatively attested reliably affirmed unambiguously recognized universally accepted unequivocally endorsed publicly proclaimed explicitly declared categorically 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