On August 1, the Department of Justice officially launched and released the framework for its new Corporate Whistleblower Awards (CWA) Pilot Program. This establishes– for the first time– an official whistleblower award program offering financial awards to individuals who come forward with information about corporate misconduct.
There are five critical differences in the CWA Pilot Program as compared to other whistleblower programs:
Involvement in Misconduct Makes Whistleblowers Ineligible
The DOJ disqualifies whistleblowers who significantly participated in the wrongdoing they report. Examples of “wrongdoing” includes actions such as directing, planning, or knowingly benefiting from the activity. In contrast, other programs like the SEC’s whistleblower program allow some whistleblowers to receive reduced awards based on their level of involvement.
The DOJ Can Revoke Anonymity
Whistleblowers can report anonymously through an attorney, but the DOJ reserves the right to demand their identity at any time for legal reasons. This discretion means the DOJ does not guarantee anonymity.
Encourages but Does Not Require Internal Reporting
The DOJ encourages employees to report misconduct internally before approaching them and considers this favorably when determining award amounts. However, internal reporting is not mandatory and carries risks of retaliation.
Denies Awards Without Appeal Options
The DOJ decides awards at its discretion and does not guarantee them. If the DOJ denies an award, whistleblowers cannot appeal the decision to a court, unlike other programs where whistleblowers can challenge the decision.
Recommends Considering Other Stronger Programs
The DOJ’s program aims to cover gaps left by other programs but may be less favorable than others like the False Claims Act, SEC, CFTC, IRS, or anti-money laundering whistleblower programs. These established programs often provide better protections and guaranteed awards. It is important to ask an experienced attorney about your potential case to ensure you are using the best program to bring your allegations forward.
Conclusion
Whistleblowers should closely evaluate these differences when deciding whether to use the DOJ’s program or explore other established programs that offer stronger protections and guaranteed awards. If you believe you may have knowledge of corporate wrongdoing, fraud, or have questions about any of DOJ’s whistleblower programs, please contact Hoyer Law Group to speak with one of our experienced whistleblower attorneys today.
