• Practice Areas • Practices • Whistleblower Program of the U.S. Department of Justice
A new Department of Justice whistleblower pilot program tries to fill in gaps in the False Claims Act
The program offers financial rewards to whistleblowers who provide original, truthful information leading to successful forfeitures to the government exceeding $1 million in net proceeds.
Here are the eligibility criteria:
- Original information: The whistleblower must supply information that the DOJ did not already know.
- Truthfulness: The information provided must be accurate and complete.
- Subject matter: The misconduct reported should be about one of the following targeted programmatic areas:
- Financial crimes: Involving financial institutions, including traditional banks and cryptocurrency businesses.
- Foreign corruption: Misconduct by companies involving foreign officials or entities.
- Domestic corruption: Misconduct by companies within the United States.
- Healthcare fraud: Schemes involving private-insurance plans. (This fills a gap in the federal False Claims Act, which relates only to fraud against the government.)
- Exclusivity: The information cannot be eligible for rewards under other federal whistleblower programs. So the program is intended to supplemental rather than supplant or overlap with existing whistleblower programs.
- Cooperation: The whistleblower is expected to cooperate fully with the government’s investigation and any legal actions that follow.
Potential benefits:
- Monetary Awards: Eligible whistleblowers may receive a percentage of the net proceeds forfeited because of the information they provided. While the exact percentage is up to the DOJ’s discretion, awards could be substantial, potentially up to 30% of the forfeited assets.
- Encouragement of corporate transparency: By providing financial incentives, the program aims to enhance corporate accountability and deter misconduct.
Caveats and criticisms:
- Discretionary awards: The DOJ has full discretion to determine the award amount. There is no guaranteed minimum payout. The DOJ in recent years hasn’t been viewed by the whistleblower bar as being particularly generous to whistleblowers, thus leaving many lawyers and whistleblowers to wonder whether the whistleblowing is worth the risks and trouble.
- Award cap: The cap on an award is $50 million. While this isn’t chump change, for larger fraud, it may not be fully proportionate to the government or other victims’ gain.
- Exclusions: Individuals who participated meaningfully in the reported misconduct, compliance officers, and internal auditors may be ineligible for awards. This creates uncertainty and requires careful consideration and analysis before a potential whistleblower proceeds.
- Anonymity concerns: The program’s provisions for protecting whistleblower anonymity are potentially insufficient.
- Funding uncertainties: Unlike some other federal whistleblower programs, this pilot lacks a dedicated fund for payouts, which may impact award disbursements.
- Change in federal administration. And the change in administration in 2025 raises even more uncertainty. As of late January 2025, it appeared that whistleblower and worker-protection enforcement at the U.S. Department of Labor had at least paused. Civil-rights enforcement at the U.S. Department of Justice was also on hold. Some of the pro-worker, civil-rights content on U.S. government websites as of late January 2025 has disappeared. It remains to be seen what happens with this program.
Since its inception, the program has garnered significant attention, receiving, according to Reuters, over 250 tips within its first few months. This response indicates a strong public interest in reporting corporate misconduct. It remains to be seen as to what the effectiveness and payouts will be.
For more detailed information, individuals can visit the DOJ’s official page on the Corporate Whistleblower Awards Pilot Program: https://www.justice.gov/criminal/criminal-division-corporate-whistleblower-awards-pilot-program (last accessed on January 28, 2025).
Contact The Chandra Law Firm LLC if you believe you are an eligible whistleblower under this program, or another.
At The Chandra Law Firm LLC, our attorneys have extensive experience representing whistleblowers and those who experience retaliation for standing up for their rights and the rights of their co-workers. We are proud to litigate on behalf of those with the courage to report unlawful discrimination and illegal conduct.
You can reach our firm, which serves clients throughout Ohio, by calling 216-578-1700 or (preferably) by filling out our online contact form.
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