The Justice Department has introduced a three-year pilot program to provide financial incentives to whistleblowers who report financial fraud, bribery, and healthcare schemes. Starting August 1, the initiative aims to uncover misconduct similar to recent high-profile cases involving Binance and Danske Bank. Whistleblowers whose tips lead to criminal or civil asset forfeitures of at least $1 million could receive up to 30% of the first $100 million in net proceeds and up to 5% of additional recoveries between $100 million and $500 million.
Deputy Attorney General Lisa Monaco emphasized the program’s goal to enhance white-collar crime enforcement by encouraging corporate insiders to come forward with previously unknown information. The initiative aligns with the Biden administration’s broader efforts to strengthen white-collar crime enforcement. The policy complements the Justice Department’s existing offers of leniency for companies that self-disclose wrongdoing, and whistleblowers can still receive incentives even if they first report misconduct internally within their organizations.
However, the program has faced some criticism. Stephen Kohn of the National Whistleblower Center argued for a mandatory payment structure to ensure the program's success. Additionally, concerns have been raised that the program might undermine internal corporate compliance systems by creating a rush to report directly to the DOJ. Nonetheless, the Justice Department has sought to address these concerns by allowing employees who first report internally to remain eligible for rewards if they subsequently report to the DOJ within 120 days.
Click here to read the original news story.