The Department of Justice (DoJ) recently started a new program called the Corporate Whistleblower Awards Pilot Program. This program began on August 1, 2024. It offers significant rewards to people who provide important information about illegal activities in their non-publicly traded companies. What should whistleblowers know about this program?
What is this new initiative?
The idea is simple: if you know about wrongdoing in your company and that information leads to the government getting back more than $1 million, you could get a reward. This reward could be up to 30 percent of the first $100 million recovered and up to 5% of any additional amount up to $500 million. This big reward is to motivate more people to come forward with what they know.
Over the next three years, the DoJ will see how well this program works. Depending on the results, they might continue or change the program. It is largely patterned after the existing programs operated by the Securities Exchange Commission and the Commodities Futures Trading Commission existing whistleblower awards programs.
When does a whistleblower report qualify for this program?
Not every whistleblower or report qualifies for a reward. Only certain types of misconduct not covered by other programs like those of the SEC or CFTC qualify.
Eligible crimes for reporting include specific offenses involving financial institutions (such as banks and cryptocurrency entities) related to money laundering, fraud and regulatory noncompliance. Reports can also be about health care fraud that involves private insurance plans not covered under the False Claims Act. Finally, the program rewards those reporting foreign corruption under acts like the Foreign Corrupt Practices Act and the Foreign Extortion Prevention Act as well as domestic corruption involving government officials.
Your situation must also meet several criteria to qualify:
- Original information: You must have new information that you found out through your own independent knowledge or analysis. Additionally, the information cannot be public or already known to the DoJ.
- Timeliness: You need to report the wrongdoing to the DoJ within 120 days after you’ve reported it inside your company.
- Eligible whistleblower: You cannot be deeply involved in the wrongdoing, have a management role related to the wrongdoing or have learned about it through your job in legal or compliance roles under certain conditions.
- Ethically-obtained information: The information must be obtained ethically, without breaking the law or violating privacy rights.
How can I prepare my information so it could qualify for an award?
Attorneys who represent whistleblowers – like the attorneys at Cross Law Firm – can assist clients to gather, analyse, research and prepare information for submission to the government under the new award program. If you are uncertain whether this program applies to your situation, you may want to speak to an attorney. They can help you determine whether you qualify.
What are the benefits of this program?
This program gives you a strong reason to report wrongdoing. By coming forward, you not only can get a financial reward but also help stop harmful practices affecting many people. Whistleblowers are crucial in exposing hidden fraud and corruption.
This program is part of a bigger effort by the DOJ to improve how companies follow the law. By encouraging whistleblowers and urging companies to report issues quickly, the DOJ wants to create a more honest corporate world.
What should you do before blowing the whistle under this program?
Whistleblowers play an important role in bringing wrongdoing to light. However, the decision to blow the whistle can be risky. Before coming forward, potential whistleblowers should:
- Evaluate the quality of information: Ensure that the information is specific, credible and provable. This information is more likely to qualify for the program and lead to a successful outcome.
- Secure evidence: If your employer destroys evidence or limits your access, that could undermine your report. Keep any evidence which could support your case – including emails or other communications – safe.
- Understand the risks of making a report: While the DOJ provides protections for whistleblowers, there can still be personal and professional consequences.
- Seek legal advice as soon as possible: Before taking any action, it’s wise to consult with a lawyer with experience in whistleblower cases. They can guide you on how to protect your rights and minimize risks throughout the whistleblowing process.
The Corporate Whistleblower Awards Pilot Program is an important step toward uncovering corporate misconduct and rewarding those who reveal wrongdoing. If you have critical information about wrongdoing in your company, now could be the right time to step forward and make a difference.