The DOJ's Whistleblower Pilot Program Adds Incentives for Robust Corporate Compliance Programs
By incentivizing individuals to report misconduct through its Whistleblower Pilot Program, the DOJ has expanded its arsenal and the means by which it can identify misconduct. So wrongdoers beware — although this is not the Old West, everybody loves a good bounty.
September 11, 2024 at 11:06 AM
10 minute read
Whistleblower LawsWhat You Need to Know
- The Whistleblower Pilot Program will provide monetary awards to whistleblowers who provide the DOJ with original and truthful information about certain types of corporate misconduct that leads to a successful asset forfeiture.
- The Pilot Program's purpose is to fill gaps in the coverage of information that the DOJ has obtained and used for its investigations and prosecutions from already-existing programs.
- Companies should review their compliance programs and internal controls to ensure that their current procedures are sufficient to effectively detect and prevent misconduct.
As Deputy Attorney General (DAG) Lisa Monaco recently observed, "[g]oing back to the days of 'Wanted' posters across the Old West, law enforcement has long offered rewards to coax tipsters out of the woodwork." On Aug. 1, 2024, the Department of Justice (DOJ or Department) joined the club of federal law enforcement agencies that have adapted this approach to white-collar crime by launching its own three-year Whistleblower Pilot Program. The Whistleblower Pilot Program will provide monetary awards to whistleblowers who provide the Department with original and truthful information about certain types of corporate misconduct that leads to a successful asset forfeiture. If the success of other government whistleblower programs, such as the one administered by the Securities and Exchange Commission (SEC), is any measure, the DOJ can be expected to see a surge of reports alleging corruption, money laundering and other corporate fraud. If this is not enough reason for companies to take a fresh look at their compliance programs to ensure they are effective at quickly detecting and remediating misconduct, the DOJ simultaneously amended the Criminal Division's Corporate Enforcement and Voluntary Self-Disclosure Policy (Corporate Enforcement Policy) to allow companies the opportunity for full voluntary self-disclosure benefits even after the DOJ receives a whistleblower tip — so long as the company self-reports that conduct to the DOJ within 120 days of receiving an internal report and before the DOJ contacts the company. While on the one hand, the DOJ is clearly sending a message to employees that if they see something, say something, as DAG Monaco stated to companies in no uncertain terms, "[o]ur message is equally clear: knock on our door before we knock on yours."
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