DOJ Launches Whistleblower Program to Strengthen Corporate Enforcement

In an announcement at the American Bar Association's 39th National Institute on White Collar Crime, Deputy Attorney General Lisa Monaco revealed a comprehensive set of initiatives aimed at reinforcing the Department of Justice's (DOJ) commitment to corporate accountability. Among the groundbreaking measures is the creation of a DOJ-run whistleblower rewards program.

Monaco, delivering the Larry Barcella Memorial Lecture, emphasized the DOJ's unwavering dedication to holding both individuals and corporations accountable for misconduct. She highlighted recent successes, including convictions of high-profile CEOs in the cryptocurrency industry and other key figures across various sectors.

The Deputy Attorney General underscored the importance of individual accountability and outlined the DOJ's strategy of pursuing significant penalties for repeat offenders. Notable cases, such as the handling of Ericsson's breach of a Deferred Prosecution Agreement (DPA) and Teva Pharmaceuticals' price-fixing investigation, were cited as examples of the DOJ's commitment to escalating sanctions for corporate recidivists.

Monaco announced the launch of a whistleblower rewards program, designed to incentivize individuals to come forward with information about significant corporate or financial misconduct previously unknown to the DOJ. The program aims to fill gaps left by existing whistleblower programs at agencies like the SEC and CFTC, expanding the scope of incentivized reporting to cover a broader range of corporate and financial misconduct.

The Deputy Attorney General outlined the basic framework of the program, emphasizing that payments would only be made after all victims had been compensated, for truthful information not already known to the government, and in cases where no existing financial disclosure incentive was applicable.

In addition to the whistleblower program, Monaco highlighted the DOJ's efforts to incorporate disruptive technologies, particularly artificial intelligence (AI), into its enforcement framework. She warned that AI, while holding great promise, could be misused to supercharge illegal activities, including corporate crime. Monaco announced the incorporation of AI-related risk assessment into the DOJ's guidance on the Evaluation of Corporate Compliance Programs.

Monaco concluded her remarks by encouraging companies to invest in compliance programs, emphasizing that the price of committing another violation would far exceed the cost of preventing one. She urged whistleblowers to come forward, assuring them that the DOJ wants to hear from them and that the newly launched program would provide monetary incentives for their cooperation.

The DOJ's whistleblower rewards program is set to undergo a 90-day sprint for development and implementation, with a formal start date expected later this year. The initiative marks a significant step in the DOJ's ongoing efforts to enhance corporate accountability and promote a culture of compliance within organizations.

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