New Whistleblower Program Targets 'Gaps' in Corporate Crime
Author: Michael Cardman, Brightmine Senior Legal Editor
September 6, 2024
The US Department of Justice (DOJ) has launched a new whistleblower program intended to help it uncover corporate crime in areas it says have been neglected by other efforts.
Its new Criminal Division Corporate Whistleblower Awards Pilot Program will award a percentage of forfeited assets to whistleblowers who provide the DOJ with original and truthful information about corporate misconduct that results in a forfeiture of at least $1 million.
The DOJ has long used information from other whistleblowing programs to prosecute corporate crimes. However, the DOJ said these other whistleblower programs "do not cover the full scope of corporate crime" it investigates. Its new program aims to fill in the gaps by targeting:
- Violations by financial institutions, such as money laundering;
- Foreign corruption and bribery;
- Bribes or kickbacks to domestic officials; and
- Health care fraud schemes involving private insurance plans.
The new program highlights the importance of internal whistleblowing procedures and policies.
In addition to the DOJ's new program, existing programs are bringing in record awards. For example, in fiscal 2023, settlements and judgments under the False Claims Act totaled about $2.7 billion, and the US Securities and Exchange Commission's Whistleblower Program awarded nearly $600 million.