Hahn Air Lines GmbH, a privately owned company based in Germany, and its Minneapolis-based subsidiary Hahn Air USA Inc. (collectively Hahn Air) have agreed to pay $26.8 million to resolve allegations that Hahn Air violated the False Claims Act by knowingly failing to remit to the United States certain travel fees that Hahn Air collected from commercial airline passengers flying into or within the United States.
According to Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, "Companies that benefit from air travel in the United States must pay their fair share of the costs associated with that such travel." The settlement comes as a result of allegations that from 2012 to 2018, Hahn Air knowingly avoided paying certain travel fees owed to the United States, including fees to the Department of Agriculture, Customs and Border Protection, and the Transportation Security Administration.
U.S. Attorney Matthew M. Graves for the District of Columbia emphasized that "companies cannot pocket, for their own benefit, government taxes and fees that they collect from their customers," and that companies intentionally doing so will face stiff penalties.
Inspector General Joseph V. Cuffari of the Department of Homeland Security (DHS) expressed appreciation for the partnership with the Justice Department's Civil Division and other law enforcement partners, stating that the settlement demonstrates the commitment to hold corporations accountable when they fail to comply with the law.
Acting Special Agent in Charge Charmeka Parker of the USDA Office of the Inspector General highlighted that "participation in Government travel business programs is a privilege and should not involve actors who seek to circumvent paying travel costs to the U.S. Government." The settlement, according to Parker, protects the integrity of vital government programs.
The settlement, which resolves a lawsuit filed under the whistleblower provision of the False Claims Act, also involves a whistleblower receiving approximately $4.8 million. The resolution was the result of a coordinated effort between the Justice Department's Civil Division, Commercial Litigation Branch, Fraud Section, the U.S. Attorney's Office for the District of Columbia, and the Offices of Inspector General for the DHS and USDA.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.