On August 1, 2024, Deputy Attorney General Lisa Monaco announced the launch of a new corporate whistleblower awards program. This initiative aims to enhance the Justice Department's efforts to hold corporate wrongdoers accountable.
"Starting at noon today, whistleblowers can visit justice.gov/CorporateWhistleblower to report information about certain types of corporate crime," Monaco stated. She added that if a prosecution results in the forfeiture of criminal proceeds, the whistleblower may receive a portion as a monetary award.
Monaco emphasized that this program builds on traditional strategies to uncover criminal activities that might otherwise remain hidden. "Law enforcement has long offered rewards to coax tipsters to report crimes — from the 'Wanted' posters of the Old West to the reforms in Dodd-Frank that created whistleblower programs at the SEC and the CFTC," she noted.
Existing programs like those run by the SEC, CFTC, IRS, and FinCEN have proven effective but are limited in scope. They only cover misconduct within their jurisdictions or fraud against the government through qui tam actions. "While these programs have proven indispensable, they don’t address the full range of corporate and financial misconduct that the Justice Department prosecutes," Monaco said.
To address these gaps, Monaco tasked leaders at the Criminal Division with designing a comprehensive program. "They did exactly that, engaging with a broad range of advocates and experts," she remarked.
Nicole Argentieri, head of the Criminal Division, will provide further details about this Pilot Program shortly. Meanwhile, Monaco highlighted how this initiative fits into broader efforts under her administration to hold serious wrongdoers accountable and promote responsible corporate citizenship.
"Our corporate enforcement program is rooted in using both carrots and sticks," she explained. The new whistleblower program serves as an additional tool for uncovering misconduct when companies hesitate to report voluntarily.
"There’s a synergy to these disclosure programs: together, they create a multiplier effect that encourages both companies and individuals to tell us what they know — and to tell us as soon as they know it," Monaco asserted.
The goal is for tips from whistleblowers not only to build strong criminal cases but also impose significant penalties on culpable parties. As penalties increase for corporate crime, so do incentives for companies investing in compliance programs.
Monaco concluded by stating that while ongoing assessments will determine any necessary refinements or additional statutory authorities needed for this program's effectiveness, they are eager to move forward with existing congressional mandates aimed at strengthening corporate accountability and protecting American citizens.
She then handed over proceedings to Nicole Argentieri for further elaboration on the Pilot Program.