Justice Department Launches Whistleblower Rewards Program
Justice Department Launches Whistleblower Rewards Program
Justice Department Launches Whistleblower Rewards Program
News summary

The U.S. Department of Justice (DOJ) has launched a new Corporate Whistleblower Awards Pilot Program (CWAPP) effective August 1, 2024, aimed at encouraging reporting of corporate misconduct by offering financial rewards to whistleblowers. Under this program, individuals can receive up to 30% of the proceeds from successful forfeitures exceeding $1 million, with eligibility criteria that include providing original, truthful information and cooperating with DOJ investigations. The CWAPP specifically targets violations related to healthcare benefit programs as well as a range of corporate crimes such as foreign corruption and financial misconduct. It complements existing whistleblower initiatives from other agencies like the SEC, which has seen substantial success in recovering funds through similar programs. Companies are advised to review their directors and officers liability insurance policies as the increased likelihood of investigations could leave them exposed, as traditional policies may not cover government investigations. Overall, the CWAPP represents a significant shift in the DOJ's approach to corporate accountability, potentially leading to more whistleblowers coming forward and enhancing corporate compliance efforts.

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