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DOJ Whistleblower Program

In 2024, the Department of Justice launched a whistleblower pilot program to detect and prosecute corporate crimes not covered by existing whistleblower incentive programs.

In 2024, the Department of Justice (DOJ) launched a pilot whistleblower reward program to better detect, deter, and prosecute corporate crime that falls outside the scope of existing whistleblower regimes.

 

The DOJ Whistleblower Program covers a broad range of crimes and accepts tips concerning:

  • Financial institution money laundering, fraud, and compliance violations
  • Foreign corruption and bribery, including the Foreign Corrupt Practices Act
  • US-based bribery and corruption of local, state, and federal officials
  • Healthcare related crimes not already covered by the False Claims Act
  • Non-healthcare related fraud against the government, but again, only those crimes not already covered by the False Claims Act
  • Tariff, trade, and customs fraud
  • Violations of U.S. sanctions, material support for terrorism, or support of cartels and transnational criminal organizations.

Financial Incentives for DOJ Whistleblowers 

Whistleblowers who provide original, timely and accurate information that leads to a penalty in excess of $1 million may be eligible for significant rewards:

  • Up to 30% of any net proceeds forfeited between $1 million and $100 million
  • Up to 5% of any net proceeds forfeited between $100 million and $500 million.

The DOJ expects to pay whistleblowers 30% of the first $10 million in net proceeds forfeited. The decision to issue an award is at DOJ’s sole discretion, but tipsters who cooperate and further contribute to enforcement efforts can generally expect a higher award percentage.

Limited Anti-Retaliation Protections

Critically, the DOJ Pilot Program has adopted from the SEC Whistleblower Program one of the strongest safeguards for whistleblowers: the ability to file their submission anonymously if they work with a whistleblower attorney.

Unlike the SEC’s incentive program, however, there are no automatic anti-retaliation protections for whistleblowers who submit tips to DOJ (Note: whistleblowers may still be protected under other federal and state anti-retaliation statutes. An experienced attorney can conduct an individualized assessment of a whistleblower’s retaliation claims).

Given the scope and complexity of violations under the program’s purview, coupled with the professional risks associated with blowing the whistle, prospective whistleblowers should contact an attorney who is equally well versed in employment and whistleblower law. Knowing how, when, and where to file a whistleblower submission is crucial to minimize risk and maximize the potential for an award.

Spotlight: The SEC Whistleblower Program

The DOJ Whistleblower Program is modeled on the extremely successful SEC Whistleblower Program, which was formed in 2011 and has awarded more than $2.2 billion to whistleblowers and returned billions more to harmed investors and taxpayers.

However, the DOJ program has some important differences that whistleblowers must consider. It has a stricter exclusion policy for whistleblowers who engage in illegal activities. The DOJ Whistleblower Program also has no legal protections for those who suffer retaliation by the accused entity—though it does consider whether the company retaliated against a whistleblower in determining the penalty for offenders.

Whistleblowers are potentially still protected under other state and federal anti-retaliation laws. Outten & Golden’s experienced whistleblower attorneys can guide individuals in the application of these other statutes.

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