DOJ Announces Sprint for Corporate Whistleblower Award Pilot Program

Many employees see fraud and other types of corporate malfeasance at their jobs, but are reluctant to take action because they’re worried about getting fired or demoted. Even when workers are aware that legal protections exist for whistleblowers, they might not feel that the risk is worth it. Now, the Department of Justice (DOJ) has launched an intensified effort to encourage the reporting of corporate misconduct.  

On August 1, the DOJ announced the creation of its Corporate Whistleblower Awards Pilot Program as part of its “policy sprint” aimed at ensuring corporate accountability and filling in gaps that exist within the framework of existing federal whistleblower programs. By offering financial incentives to employees and stepping up enforcement of anti-retaliation rules, the program encourages individuals to come forward with information about wrongdoing within companies.  

The program makes it possible for workers to receive payment by citing violations of various federal laws, including provisions addressing securities fraud, tax evasion, healthcare fraud and environmental violations. Information can be reported through a specifically designated DOJ website. Generally, whistleblower awards range from between 15 and 30 percent of what the government recovers as a result of the report. In some cases, the DOJ may decline to intervene, but the whistleblower can still pursue the case independently through a qui tam lawsuit, which can also lead to compensation.

Along with offering financial rewards, the Corporate Whistleblower Awards Pilot Program protects the confidentiality of employees who identify fraud, waste or abuse. Should the company try to punish the whistleblower, the DOJ is prepared to take action in response to this illegal retaliation, which could include a criminal investigation.  

Companies are also being incentivized to root out fraudulent behavior through this program. Voluntary Self-Disclosure gives businesses a chance to reduce potential sanctions when they identify a problem and notify the government. By remediating the harm, naming the involved individuals and cooperating with government investigators, a company could receive more favorable treatment. Another facet of the program promotes the use of internal whistleblowing systems. Accordingly, an employee who brings evidence of corporate crime to their employer might still be eligible to collect a share of the asset forfeiture, just as they would if they made the report directly to DOJ.

At Kardell Law Group, we focus on representing whistleblowers and can advise you on the latest legal developments in this area, including information on potential financial awards. If you’ve noticed improper activity at your workplace, our attorneys will guide you on potential next steps.