Overview
On August 1, 2024, the US Department of Justice’s (DOJ’s) Principal Deputy Assistant Attorney General of the Criminal Division, Nicole Argentieri, unveiled the highly anticipated details of DOJ’s Corporate Whistleblower Awards Pilot Program.
In Depth
The program, sponsored by the Criminal Division, was created to fill the gaps in incentive coverage that have been left open by other whistleblower programs, such as the Security and Exchange Commission’s (SEC’s) foreign corruption program and the Civil Division’s qui tam program for False Claims Act matters involving federal healthcare benefit fraud.
DOJ’s new whistleblower pilot program encourages tipsters to come forward with useful information concerning corporate misconduct in four core areas: (1) foreign corruption not covered by the SEC’s program or other existing programs, (2) crimes involving financial institutions, (3) corruption in the United States, and (4) healthcare fraud involving private insurers.
Argentieri also disclosed an amendment to DOJ’s recently established Corporate Enforcement and Voluntary Self-Disclosure Program. She advised that if a company comes forward and reports misconduct to DOJ within 120 days, and before DOJ reaches out to the company, the company will be eligible for the greatest benefit the government can grant – prosecution declination – if the company fully cooperates and engages in remediation.
Argentieri described the below key areas of focus for the whistleblower pilot program and encouraged whistleblowers seeking a share of the resulting forfeiture proceeds to contact DOJ directly with their information:
Foreign Corruption
- Foreign corrupt practices and misconduct not covered by the SEC whistleblower program or other existing programs, such as bribery at international commodity trading companies that do not issue securities in the United States
- Misconduct covered by the recently enacted Foreign Extortion Prevention Act (FEPA)
Crimes Involving Financial Institutions
- Corporate misconduct concerning abuses of the financial system
- Obstructing or defrauding federal regulators
- Fraudulent efforts to access services from United States financial institutions
Corruption in the United States
- Companies engaged in bribing government officials in the United States
Healthcare Fraud
- Fraud against private healthcare benefit programs (i.e., healthcare fraud that is not covered by the Civil Division’s qui tam policy involving the False Claims Act)
KEY TAKEAWAYS
DOJ continues to advance and optimize policies designed to fill gaps left open by traditional whistleblower incentive programs. Their aim is to expand reporting of corporate crime and strengthen DOJ’s overall enforcement approach.
With this announcement, companies should enhance risk-monitoring associated with four key areas of corporate misconduct: foreign corruption, crimes against financial institutions, corruption in the United States and fraud against private healthcare benefit programs. DOJ is opening the doors wide for tipsters to come forward in these areas, with the powerful new incentive of monetary awards.
In amending its Corporate Enforcement and Voluntary Self-Disclosure Program, DOJ has clarified the route to a declination of prosecution in exchange for timely corporate disclosure of misconduct, along with cooperation and remediation.
Companies will be well-served in the current enforcement environment by additional investment in compliance programs and enhancements to internal reporting structures.
