DOJ Secures $8.1 Million Settlement in Whistleblower Case Over Misused Pandemic Relief Funds

The Department of Justice announced an $8.1 million settlement on July 15, 2025, resolving a whistleblower case that revealed the misuse of federal pandemic relief funds under the Payroll Support Program (PSP) of the CARES Act. The case, initiated by Dr. Herbert Remidez and represented by Hoyer Law Group, PLLC, accused a company of violating the False Claims Act by compensating employees beyond PSP's statutory limits and falsely certifying compliance.

The settlement mandates over $4 million in restitution, with the whistleblower receiving a portion of the recovery as stipulated by law. This resolution not only rectifies the misallocation of taxpayer dollars but also reinforces the pivotal role of whistleblowers and legal frameworks in ensuring the proper use of public funds. Dave Scher of Hoyer Law Group lauded the outcome as a victory for integrity and accountability, principles at the heart of the False Claims Act.

Filed in the U.S. District Court for the Northern District of Georgia as United States ex rel. H Remidez LLC v. Delta Air Lines Inc., No. 1:23-cv-01116, this case serves as a critical reminder of the challenges in overseeing emergency government aid. It underscores the necessity for continuous vigilance to prevent the exploitation of funds intended for public welfare during crises.