Will the DOJ Listen to the Whistleblower Community in Establishing Whistleblower Award Program?

Kohn, Kohn & Colapinto LLP
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On March 7, Deputy Attorney General Lisa Monaco announced that the U.S. Department of Justice (DOJ) was initiating a “90-day sprint” to develop a whistleblower rewards program. In her announcement, Monaco emphasized the huge success of other agencies’ whistleblower award programs, pointing specifically to the Dodd-Frank Act programs at the U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) and stating that these programs “have proven indispensable.”

It seems clear then, that the DOJ is hopeful that it can set up a program on par with the Dodd-Frank programs. But decisions made during the “90-day sprint” on parameters and protocols for the program will be crucial in determining just how effective the DOJ program is.

The day after the DAG’s announcement, Acting Assistant Attorney General Nicole M. Argentieri explained that “the whole point of the DAG’s 90-day ‘policy sprint’ is to gather information, consult with stakeholders, and design a thoughtful, well-informed program.”

Whistleblower advocates, who have direct experience and insights into what makes other award programs successful, have been highly engaged with the DOJ’s policy sprint, offering detailed recommendations to the DOJ outlining the key elements of successful whistleblower award programs.

Whistleblower advocacy groups, including National Whistleblower Center (NWC) and The Anti-Fraud Coalition (TAF Coalition), have sent letters outlining detailed recommendations for the program.

Among the key elements which whistleblower advocates are calling for are mandatory minimum awards for qualified whistleblowers, a dedicated Whistleblower Office, anonymous and confidential reporting channels, and clear and consistent eligibility criteria. All these elements have proven to be vital to the success of other proven whistleblower award programs, including the Dodd-Frank programs at the SEC and CFTC.

These same elements are also supported by former SEC Commissioner Allison Herren Lee, now Of Counsel at the whistleblower firm Kohn, Kohn & Colapinto. According to Lee, given the immense success of the SEC Whistleblower Program, “it thus makes sense to carefully consider the key elements of the SEC program underpinning its success, not the least of which as experience has shown – is a transparent and reliable mandatory minimum award.

NWC has also invited whistleblower supporters to send letters to the DOJ, Congress and White House calling for these proven best practices to be included in the DOJ program. According to NWC, thousands of such letters have been sent.

It is encouraging that the DOJ is looking to “gather information” and “consult with stakeholders” to “design a thoughtful, well-informed program.” It remains to be seen, however, whether the DOJ will listen to the whistleblower community and implement these proven best-practices.

The whistleblower community has been closely involved in the development and subsequent implementation of all the whistleblower award programs whose success the DOJ is looking to emulate. They know what elements are key to making these programs work, and they have let the DOJ know them in great detail.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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