The U.S. Department of Justice (DOJ) on April 15, 2024, unveiled a new pilot program aiming to shield whistleblowers from prosecution when they come forward with information on corporate wrongdoing.
The initiative, titled “Pilot Program on Voluntary Self-Disclosures for Individuals,” aims to encourage individuals to report criminal activities involving corporations, such as financial crimes, bribery, and corruption.
Under the program, whistleblowers who provide new and significant information to federal law enforcement may be granted leniency through a non-prosecution agreement (NPA).
To qualify, individuals must disclose original, nonpublic information voluntarily and before any government inquiry or investigation.
They must also cooperate fully, including agreeing to forfeit any ill-gotten gains and pay restitution.
The program covers various criminal activities, including financial institution violations, foreign corruption, healthcare fraud, and government contracting fraud.
However, individuals holding certain positions, such as CEOs or CFOs, and those with prior felony convictions or involvement in the criminal scheme’s leadership, are ineligible for NPA consideration.
This initiative expands the DOJ’s whistleblower program, which also includes plans to offer monetary awards to whistleblowers reporting financial crimes and corruption.
Additionally, the DOJ is enhancing its voluntary self-disclosure program for corporations, providing a presumption of non-prosecution for acquiring companies disclosing misconduct discovered during due diligence.
These policies signal a shift in how individuals and corporations approach reporting and addressing misconduct.
Employers should update compliance policies and whistleblower protections to encourage timely reporting of potential wrongdoing and mitigate potential liability.
