Whistleblower Case Leads to $8.1 Million Settlement Over Misuse of Pandemic Relief Funds

The Department of Justice announced a significant $8.1 million settlement on July 15, 2025, following a whistleblower case that uncovered the improper use of federal pandemic relief funds. The case, spearheaded by Dr. Herbert Remidez and represented by Hoyer Law Group, PLLC, alleged violations of the False Claims Act, specifically targeting inaccuracies in certifications submitted under the Treasury Department’s Payroll Support Program (PSP).

The PSP, established under the CARES Act, was designed to provide financial assistance to the airline industry during the COVID-19 pandemic, with strict limitations and reporting requirements. The settlement resolves claims that certain employees at the defendant company received compensation exceeding statutory limits, and that the company falsely certified compliance after these breaches were known.

Dave Scher, a partner at Hoyer Law Group, praised the outcome as a testament to the False Claims Act’s purpose, emphasizing the importance of protecting taxpayer dollars. Dr. Remidez’s willingness to come forward was crucial in uncovering the misuse, demonstrating a commendable commitment to integrity and accountability.

The settlement includes over $4 million in restitution, with the whistleblower set to receive a statutory share of the recovery. This case underscores the critical role of whistleblowers and legal teams in ensuring government funds are used appropriately, especially during times of national crisis.

This news story relied on content distributed by None. Blockchain Registration, Verification & Enhancement provided by NewsRamp. The source URL for this press release is Whistleblower Case Leads to $8.1 Million Settlement Over Misuse of Pandemic Relief Funds.