6 August 2024. The U.S. Department of Justice (DOJ) has launched the Criminal Division Corporate Whistleblower Awards Pilot Program to combat corporate misconduct. This initiative leverages whistleblower information to prosecute crimes that fall outside of the False Claims Act (a civil qui tam statute) and incentivize industry insiders to report fraud of all types.
What is the DOJ Corporate Whistleblower Awards Pilot Program?
The program encourages employees and insiders to report corporate crime by offering financial incentives. If a whistleblower provides original, truthful information that leads to a successful forfeiture of assets, they may be eligible for a monetary award.
Key Areas of Focus
The program targets four main areas of corporate misconduct:
- Crimes Involving Financial Institutions: This includes traditional banks and cryptocurrency businesses.
- Foreign Corruption: Misconduct by companies operating internationally.
- Domestic Corruption: Misconduct within U.S. companies.
- Healthcare Fraud: Schemes targeting private insurance plans and patients.
How the Whistleblower Program Works
1. Submission:
Whistleblowers submit original information about corporate misconduct to DOJ’s Criminal Division. Information can be submitted via the intake form available at [email protected].
2. Review and Investigation:
The Criminal Division reviews the submissions and determines whether to open an investigation. If an investigation leads to a successful prosecution and forfeiture of over $1 million, the whistleblower may receive a monetary award.
3. Award Calculation:
The award is based on “net proceeds forfeited” after compensating individual victims and covering associated costs. Whistleblowers can earn up to 30% of the first $100 million in net proceeds, and up to 5% of net proceeds ranging from $100 million to $500 million.
Protecting Whistleblowers
Confidentiality is a priority. The DOJ is committed to protecting whistleblowers from retaliation. Measures include:
- Keeping tips confidential to the fullest extent of the law.
- Investigating and addressing any attempts to obstruct whistleblower reports.
Rules and Restrictions
To ensure integrity, the DOJ program prohibits awards to individuals who were significantly involved in the criminal activity.
Benefits of the Whistleblower Program
1. Filling Federal Whistleblower Program Gaps:
Modeled after successful programs such as the SEC, CFTC, and FinCEN, this program aims to cover areas not addressed by these existing frameworks.
2. Enhancing Corporate Investigations:
By leveraging insider information, the DOJ can more effectively uncover and prosecute corporate crimes.
3. Encouraging Internal Reporting:
Employees are encouraged to use company compliance programs and report internally before approaching the DOJ. Internal reports submitted to DOJ within 120 days may increase the whistleblower’s award.
4. Promoting Corporate Accountability:
Companies that proactively disclose misconduct within 120 days of receiving an internal whistleblower report may benefit from leniency under the DOJ’s Corporate Enforcement and Voluntary Self-Disclosure Policy.
5. Evaluating and Adapting the Program:
The DOJ will continuously assess the pilot program to refine its effectiveness and may seek additional legislation to expand its impact.
Enterprise whistleblowers play a crucial role in maintaining corporate integrity. The DOJ’s new Corporate Whistleblower Awards Pilot Program not only aims to uncover corporate crimes but also incentivizes ethical behavior and transparency within companies. If you have valuable information about corporate misconduct, consider participating in this program. Your contribution could help level the playing field for your industry while providing you with financial rewards.
If you would like to report healthcare, government contracts, or other government programs fraud, you can contact attorneys at Tycko & Zavareei LLP. Eva Gunasekera and Renée Brooker are former officials of the United States Department of Justice and prosecuted whistleblower cases under the False Claims Act. Renée served as Assistant Director at the United States Department of Justice, the office that supervises False Claims Act cases in all 94 United States District Courts. Eva was the Senior Counsel for Health Care Fraud. Eva and Renée now represent whistleblowers. For a free consultation, you can contact Renée at [email protected] (tel.: 202-417-3664) or contact Eva Gunasekera at [email protected]. You can also go to Tycko & Zavareei LLP’s website for whistleblowers to learn more at www.fraudfighters.net.