Dive Brief:
- The U.S. Department of Justice’s Criminal Division announced on Aug. 1 a new corporate whistleblower program that will provide monetary awards to those who report corporate wrongdoing.
- Under the Department of Justice Corporate Whistleblower Awards Pilot Program, “a whistleblower who provides the Criminal Division with original and truthful information about corporate misconduct that results in a successful forfeiture may be eligible for an award,” the department said. Whistleblowers must be individuals and are eligible for awards if the information they provide leads to criminal or civil forfeiture of more than $1 million in net proceeds, according to DOJ guidance.
- Reports must be related to crimes involving financial institutions, foreign and domestic corruption or healthcare fraud schemes, the department said. Companies that self-report within 120 days of receiving a whistleblower report internally might be able to avoid prosecution, per the DOJ.
Dive Insight:
The new whistleblower awards program is meant to fill gaps left by existing DOJ and other government whistleblower programs, according to DOJ guidance.
“Providing individuals with incentives to report corporate crime may also motivate corporations to create more robust compliance programs that detect and deter criminal conduct, including by encouraging internal reporting of complaints,” per the DOJ guidance. Effective compliance programs can prevent, identify and address misconduct and allow companies to report that misconduct to the DOJ when it does happen, the department said.
“When misconduct does occur and companies are considering whether to make a self-report, please remember this simple message: Call us before we call you,” DOJ Principal Deputy Assistant Attorney General Nicole M. Argentieri said in prepared remarks.
The three-year initiative will be managed by the Criminal Division’s Money Laundering and Asset Recovery Section and took effect Aug. 1.