DOJ Expands Corporate Whistleblower Program, Creating More Complexity in the Whistleblower Space
On May 12, 2025, the Department of Justice announced the expansion of its Corporate Whistleblower Awards Pilot Program that began in 2024. As reported then by Getnick Law, the Attorney General is authorized under 28 U.S.C. § 524(c) to pay awards to whistleblowers for information or assistance leading to criminal or civil forfeitures. The Program initially covered certain financial crimes, foreign and domestic corruption, and non-government health care fraud. This week, the federal government added the following “priority areas”: “procurement and federal program fraud; trade, tariff, and customs fraud; violations of federal immigration law; and violations involving sanctions, material support of foreign terrorist organizations, or those that facilitate cartels and transnational criminal organizations, including money laundering, narcotics, and Controlled Substances Act violations.”
At the outset, it’s important to understand that the Pilot Program only provides for awards when the government obtains a forfeiture of defendant’s assets – such as a bank account or a mega yacht. And therein lies the complexity.
The addition of “procurement and federal program fraud” greatly expands the program. More importantly, it creates the potential for overlap with the federal False Claims Act qui tam law which provides awards to whistleblowers who report fraud causing financial loss to the federal government. Recognizing the overlap, the Department states in its Guidance that a whistleblower who “would be eligible” for an award under the qui tam law (or another whistleblower program) if they reported the “same scheme” is not eligible for an award under the Pilot Program.
The Department advises people who are unsure about whether they qualify under the Pilot Program to submit information under all applicable whistleblower laws and programs and let the Department decide.
Consulting with an attorney to ensure your rights are preserved is all the more important. Getnick Law can help. Contact us for more information or to discuss a potential case.
