DOJ Expands Scope of Whistleblower Program

Approximately one year after the federal Department of Justice (DOJ) introduced its whistleblower pilot program, new guidance has been released regarding the expansion of efforts to compensate individuals who identify misconduct. By widening the scope to include cases where tips lead to asset forfeiture, the DOJ seeks to enhance its ability to combat complex, often transnational, corporate crimes.

The updated pilot program takes aim at various forms of potentially lucrative unlawful commercial activities, such as:

  • Involvement with multinational criminal organizations — Cartels that operate across borders frequently engage in various types of illegal conduct that can be difficult to detect due to money laundering and foreign bank accounts. Someone who exposes violations of drug laws or other criminal statutes might collect a substantial award. 

  • Large-scale immigration fraud — Certain businesses rely on labor from individuals who are not permitted to be in the United States. Focusing on practices that break immigration law is designed to improve the labor market for Americans and prevent exploitation.

  • Material support of terrorism — Companies suspected of funding or supporting terrorist activities are now within the whistleblower program’s purview.

  • Corporate sanctions offenses — Sanctions that are imposed on businesses serve an important function in the effort to punish and prevent illicit operations. Whistleblowers can play an essential role in identifying businesses that breach these sanctions, potentially resulting in asset seizures.

  • Trade, tariff and customs fraud — With increased attention on tariffs, there might be a temptation to skirt the rules. Tips related to tariff evasions or falsifications in customs declarations are now encouraged, fortifying the DOJ’s response to such misconduct.

  • Corporate procurement fraud — The public sector's procurement processes are susceptible to manipulation, and businesses engaging in procurement fraud can defraud government entities of significant resources. Military contracts and other agreements to provide goods and services should not be based on inaccurate representations.   

In these types of matters and others, the possibility of financial rewards for whistleblowers serves as a powerful incentive, encouraging individuals to come forward with crucial information that might otherwise remain hidden.

Kardell Law Group is a national leader in the representation of whistleblowers who point out fraud against the government and other forms of misconduct. If you’ve noticed something that isn’t right, we’ll take the time to advise as to whether compensation might be available under the DOJ’s expanded pilot or another program.