San Diego County News
  • Home
  • National
  • Community
    • Central San Diego
    • North County
    • East County
    • South Bay
  • Politics
  • Entertainment
    • Art
    • Books
    • Film
    • Museum
    • Music
    • Television
    • Theater
    • Theme Parks
    • Pop Culture
  • Community Events
  • Lifestyle
    • Health
    • Senior Life
    • Society

Select Page

Delta to pay $8.1M over false claims in payroll aid program

Posted by SDCN Staff | Jul 16, 2025 | National | 0

Delta to pay $8.1M over false claims in payroll aid program

By SDCN Staff

Delta Air Lines Incorporated, headquartered in Atlanta, Georgia, has agreed to pay $8,100,000 to resolve allegations that it violated the False Claims Act by awarding compensation to certain corporate officers and employees that exceeded the compensation limits Delta agreed to as part of its participation in the Department of the Treasury’s Payroll Support Program (PSP).

The PSP was established by Congress in March 2020 under the Coronavirus Aid, Relief and Economic Security Act to provide payroll support to passenger and cargo air carriers and certain contractors for the continuation of payment of employee wages, salaries, and benefits. The program was administered by the Department of Treasury, and participating air carriers were required to enter into written agreements with the Treasury that imposed certain conditions in exchange for the receipt of the funds. Among other program requirements, PSP agreements included limitations on the amount of compensation that PSP participants could pay to certain corporate officers and employees earning annual compensation in excess of $425,000.

Delta entered into the agreements with Treasury in 2020 and 2021, under which Delta agreed to the PSP compensation limits. The settlement resolves allegations that, between March 2020 and April 2023, Delta awarded compensation to some corporate officers and employees that exceeded the limits set by the agreements. Delta allegedly violated the False Claims Act by inaccurately certifying compliance with PSP requirements in quarterly reports submitted to the Treasury, as well as by not notifying the Treasury of the breach once it was discovered by Delta, which would have given the government the right to demand the return of funds.

“The PSP was intended to provide critical assistance to the airline industry during the pandemic,” said Assistant Attorney General Brett Shumate of the Justice Department’s Civil Division. “The department is committed to holding accountable those who failed to abide by the terms and conditions governing their receipt and use of federal funds.”

“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,” said U.S. Attorney Theodore S. Hertzberg for the Northern District of Georgia. “We will continue to enforce all available laws to punish the misuse of taxpayers’ money.”

“Our criminal investigators have been at the center of this investigation as a core part of our responsibility to safeguard the integrity and efficiency of Treasury programs and operations, and we remain steadfast in our determination to hold recipients of public funds to the highest standards,” said Treasury Deputy Inspector General Loren Sciurba.

The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by H. Remidez LLC. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The whistleblower will receive $850,500 in connection with the settlement.

facebookShare on Facebook
TwitterTweet
FollowFollow us
PinterestSave

Share:

PreviousSheriff’s Office identifies man who died in Vista jail
NextSan Marcos man arrested in home invasion, assault case

About The Author

SDCN Staff

SDCN Staff

Related Posts

Governor Newsom enhances state stockpile of new protective masks

Governor Newsom enhances state stockpile of new protective masks

July 23, 2020

Former CEOs of MoviePass and parent company charged in a securities fraud scheme

Former CEOs of MoviePass and parent company charged in a securities fraud scheme

November 6, 2022

Kraft Heinz recalls turkey bacon over Listeria risk

Kraft Heinz recalls turkey bacon over Listeria risk

July 4, 2025

Two-vehicle collision claims 13 lives, others injured in Imperial County

Two-vehicle collision claims 13 lives, others injured in Imperial County

March 2, 2021

Top Stories

  • Man found dead in unincorporated El Cajon identified
    Man found dead in unincorporated El Cajon identified
    Community
  • Prop. 40’s failure points to the tax California already pays for its wealth: Politics overrun by money
    Prop. 40’s failure points to the tax California already pays for its wealth: Politics overrun by money
    Commentary
  • Cranberry juice may be a boon for oral hygiene
    Cranberry juice may be a boon for oral hygiene
    Health, Lifestyle
  • It’s official: California picks Xavier Becerra to replace Gavin Newsom
    It’s official: California picks Xavier Becerra to replace Gavin Newsom
    Politics
  • Sealy Wearable Electric Sherpa Blanket: Cozy, warm, and convenient
    Sealy Wearable Electric Sherpa Blanket: Cozy, warm, and convenient
    Shopping

Designed by Elegant Themes | Powered by WordPress

  • Contact Us
  • About San Diego County News
  • Terms Of Service