No, I think the government paying is right. It wasn't just the offending officer acting alone that led to the gross mistreatment of this man. The officer was working within the context of a system of local government that ought to have righted the wrong on its own. But the man had to appeal to the federal government to get it righted. The fact that the system lacked enough accountability to avoid or fix this wrong shows that more than just the one officer is the problem.

Thus, the appropriate remedy should put pressure on the conduct of the whole local government, whose use of tax-payer funds is accountable to the electorate. Punishing just the one officer by depleting his private resources won't move toward systemic reform.

And finally, on the principle of the matter, the officer can't and doesn't jail people on his own power and private authority as a citizen. He does so on the power and authority of the government that grants him his office. His actions as a private citizen did not harm the man. His public actions as an agent of the government harmed the man. In other words, the government did wrong, through the officer.

It's not the government paying, its you.