DOJ Launches Pilot Whistleblower Program Offering Financial Incentives for Reporting Corporate Misconduct

Posted on August 13th, 2024 at 11:34 AM
DOJ Launches Pilot Whistleblower Program Offering Financial Incentives for Reporting Corporate Misconduct

From the desk of Jim Eccleston at Eccleston Law

The Department of Justice (DOJ) has introduced a new pilot program offering financial rewards to whistleblowers who provide original information related to economic crimes, bribery, or healthcare fraud. Under this three-year program, whistleblowers may be eligible to receive up to 30 percent of assets forfeited by a company due to their tips.

According to the Wall Street Journal, the new initiative aligns with existing programs by the Securities and Exchange Commission (SEC) and the Internal Revenue Service (IRS), which have awarded millions to whistleblowers whose information led to significant penalties. However, the DOJ program seeks to address areas not covered by these agencies, such as certain types of corporate and financial misconduct that fall under the DOJ. The DOJ cited cases like the $4.3 billion settlement with Binance for unregistered money-transmitting business and the $1.2 billion settlement with Glencore for foreign bribery, where other whistleblower programs did not apply.

The Wall Street Journal also reports that the pilot program is designed to complement other DOJ initiatives, and reflects the department's commitment to incentivizing the reporting of corporate wrongdoing. By encouraging whistleblowers and companies to step forward, the DOJ aims to strengthen its enforcement efforts across corporate misconduct, including anti-money laundering violations, foreign bribery, and healthcare fraud.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, whistleblower, and disciplinary matters.

Tags: eccleston, eccleston law, sec, irs, doj

Return to Archive

TESTIMONIALS

Previous
Next

You are the best attorneys in the country.

CC

LATEST NEWS AND ARTICLES

December 19, 2024
GPB Capital Investors See Progress as Court Confirms Receivership

In a significant development for investors in GPB Capital Holdings, the private equity firm will move into receivership following a prolonged legal battle.

December 18, 2024
SEC Fines Cantor Fitzgerald $6.75 Million for Misleading SPAC Investors

The Securities and Exchange Commission (SEC) has charged Cantor Fitzgerald, L.P. with causing two special purpose acquisition companies (SPACs) under its control to make misleading statements to investors before their initial public offerings (IPOs). 

December 17, 2024
Former Western Asset Management Co-CIO Charged with Fraud for Cherry-picking Trades

The SEC recently charged Ken Leech, former Co-CIO of Western Asset Management, with fraud.