DOJ Unveils Whistleblower Rewards Program to Tackle Antitrust Fraud

Key Takeaways

• First-of-its-Kind Reward Offering: The DOJ’s Antitrust Division will now offer financial rewards for whistleblowers reporting antitrust crimes affecting USPS operations.
• Up to 30% of Fines: Whistleblowers may receive up to 30% of any criminal fines collected in qualifying cases.
• Postal Service Procurement Focus: The initiative focuses on violations impacting USPS property, revenues, or procurement but has broad relevance across multiple sectors.
• Partnership-Driven Enforcement: The program is a joint effort between the DOJ, USPS OIG, and the U.S. Postal Inspection Service, building on their work within the Procurement Collusion Strike Force.
• No New Law Needed: The program operates under existing legal authority and does not require additional taxpayer funding.

Deep Dive

The U.S. Department of Justice’s Antitrust Division recently announced a new Whistleblower Rewards Program in partnership with the United States Postal Service. The initiative marks the first time the Antitrust Division will offer financial incentives to individuals who report antitrust crimes and related offenses, with potential rewards reaching up to 30% of the criminal fines recovered in applicable cases.

The program aims to uncover illegal collusion schemes such as price fixing, bid rigging, and market allocation that often operate in the shadows and drive up costs for consumers, erode competition, and defraud the government, particularly in federal procurement.

“Antitrust crimes and related offenses that harm free market competition often occur in secret, making detection a formidable challenge,” said Assistant Attorney General Abigail Slater of the Antitrust Division. “The new Whistleblower Rewards Program will create a new pipeline of leads from individuals with firsthand knowledge… that will help us break down those walls of secrecy and hold violators accountable.”

The collaboration involves the U.S. Postal Inspection Service and the U.S. Postal Service Office of Inspector General (USPS OIG), both of which have a history of investigating fraud and collusion in postal-related procurements. While the rewards program is being launched in the context of protecting USPS procurements and operations, it has broader implications for industries ranging from agriculture to healthcare, where cartel behavior can distort markets and cost taxpayers millions.

“This reporting mechanism gives those with a vested interest in maintaining the integrity of the Postal Service the opportunity to join us in the fight,” said Chief Postal Inspector Gary Barksdale. “We remain committed to seeking justice against anyone who chooses to violate antitrust laws.”

The program leverages existing legal authorities, meaning it will operate without new legislation or additional cost to taxpayers. Rewards are only issued in cases involving criminal violations of law that affect the Postal Service’s property, revenues, or procurement processes. In such cases, individuals who provide specific, credible, and timely information may qualify for up to 30% of any resulting fines.

Robert Kwalwasser, Assistant Inspector General for Investigations at USPS OIG, emphasized that the program aligns with the agency’s role in the Department of Justice’s Procurement Collusion Strike Force, a multi-agency effort to target collusive activity in government contracting.

“We are pleased to be partnering with DOJ and the Postal Inspection Service to implement the Whistleblower Rewards Program… without fear of reprisal,” Kwalwasser said.

The Antitrust Division noted that the program expands on its existing enforcement toolkit, which has increasingly relied on insider tips to expose hard-to-detect schemes.

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