Hahn Air Lines GmbH, and its stateside operation, Hahn Air USA, Inc., have been slapped with a hefty $26.8 million bill to clear the slate on allegations that they shorted the U.S. government on travel fees collected from passengers. The German airline's settlement with the Justice Department is supposed to close the chapter on claims they skirted remitting certain fees from 2012 to 2018, which were picked from passengers' pockets for travel to and within the U.S.
In the detailed announcement by U.S. Attorney Matthew M. Graves, as obtained by the Justice Department, it was revealed that the accusations peg Hahn Air as pocketing government-owed fees—money that should have been directed to agencies such as the Department of Agriculture and Customs and Border Protection. This practice, which reportedly took place over six years, included fees for quarantine and inspection, customs, immigration, and aviation security services.
"Companies cannot pocket, for their own benefit, government taxes and fees that they collect from their customers," Graves said. "This settlement shows that companies that intentionally do so will face stiff penalties." The Justice Department's Principal Deputy Assistant Attorney General Brian M. Boynton echoed the sentiment, adding, "Today’s settlement demonstrates that we will protect the taxpayers by ensuring that those who are obligated to pay money to the United States, whether in the form a travel fees or other types of payments, are held accountable for what they owe."
Through joint investigative work by the Justice Department, the Department of Homeland Security, and the Department of Agriculture, this multi-million dollar settlement sends a stark warning to corporate players about the consequences of flouting the law. "Today’s multimillion dollar settlement is a result of our collective efforts and demonstrates that the United States holds corporations accountable when they fail to comply with the law," Inspector General Joseph V. Cuffari for the Department of Homeland Security said in the statement.
Part of the settlement is earmarked for a whistleblower, who via the qui tam provisions of the False Claims Act, brought the legal action that exposed Hahn Air's alleged misconduct. They are walking away with approximately $4.8 million for their role in drawing attention to the airline's supposed fee fumble.
