Throughout 2024, the Department of Justice (DOJ) established policies and programs intended to encourage companies and individuals to voluntarily self-disclose financial misconduct.

• In April, the DOJ launched its Voluntary Self-Disclosure Pilot Program, which allows companies to address, remediate, and disclose corporate misconduct.
• In September, the DOJ’s Criminal Division revised its guidance on its Evaluation of Corporate Compliance Program to incentivize companies to self-disclose financial misconduct.
• The DOJ also announced its Whistleblower Awards Pilot Program, which seeks to encourage internal reporting of corporate misconduct and incentivize companies to voluntarily self-disclose.

These efforts indicate a concerted attempt by the DOJ to incentivize whistleblowers and encourage voluntary self-disclosure of financial crimes, particularly those involving:

• Money laundering and criminal compliance-related activities involving financial institutions.
• Criminal activity related to the integrity of financial markets involving financial institutions, investment advisors or funds, or public or large private companies.
• Foreign corruption activities, including violations of the Foreign Corrupt Practices Act, Foreign Extortion Prevention Act, and money laundering.
• Healthcare fraud and kickbacks.
• Federal contract fraud.
• Domestic corruption involving bribes or kickbacks paid through public or large private companies.

Strict Eligibility Requirements for Non-Prosecution Agreements (NPAs)

The DOJ frequently uses non-prosecution agreements (NPAs) to encourage insiders to report corporate criminal activity. Individuals with criminal exposure (excluding high-level executives like CEOs, CFOs, high-level foreign officials, domestic officials, or individuals who organized or led a criminal activity) who report corporate misconduct that was otherwise unknown to the DOJ may be eligible to receive an NPA if they meet certain criteria.

Otherwise-culpable individuals may be eligible for an NPA if they meet all of the following conditions:

1. Voluntarily, truthfully, and completely self-disclose original information regarding corporate misconduct that was previously unknown to the DOJ in high-priority enforcement areas;
2. Fully cooperate and are able to provide substantial assistance against people who are equally or more culpable; and
3. Forfeit any ill-gotten gains and compensate victims.

Importantly, there are several limitations on who is eligible.

• Qualifying whistleblowers cannot be high-level executives (such as CEO, CFO, or equivalent).
• They must not have engaged in criminal conduct using violence, the use of force, threats of harm; any sex offense involving fraud, force, or coercion relating to a minor; or any offense involving terrorism.
• They cannot be elected or appointed foreign government officials, domestic government officials at any level, or employees of law enforcement agencies.
• They cannot have previous felony convictions or convictions of any kind for conduct involving fraud or dishonesty.

Corporate Executives Should Carefully Scrutinize Whistleblower Reporting Mechanisms

These new programs signal the value the DOJ places on whistleblowers and their efforts to encourage voluntary self-disclosure. As a result of these new policies, executives and the companies they lead should:

• Carefully evaluate reporting hotlines and other internal reporting mechanisms.
• Take whistleblower complaints seriously. When a company is made aware of potential misconduct, they should assess it quickly to determine whether voluntary self-disclosure is appropriate.

However, corporate executives must be mindful of the potential risks of whistleblower and self-disclosure programs and understand the DOJ may learn of misconduct through other sources.

For individuals involved in potentially criminal activity, these new programs create an incentive to cooperate. However, anyone considering whistleblowing must assure themselves that they satisfy the rigorous criteria established by the DOJ. Anyone considering participating in a self-disclosure or whistleblower program should first consult with their own independent, knowledgeable, and experienced legal counsel.

How Attorney Hope Lefeber Can Help

Hope Lefeber is an experienced and highly sought-after white-collar criminal defense attorney who serves people in Philadelphia and New York. She began her career with the United States Securities and Enforcement Commission (SEC) where she learned first-hand how the federal government prepares and prosecutes white-collar criminal cases. Today, she uses that experience to represent defendants in high-stakes federal criminal cases.

If you are considering participating in one of the DOJ’s whistleblower or corporate self-disclosure programs, Ms. Lefeber can evaluate your situation, provide valuable legal advice and guidance, and negotiate with the federal government on your behalf to ensure your interests are protected.

Contact the Law Offices of Hope Lefeber Today

Contact the Law Offices of Hope Lefeber today to schedule a confidential appointment to discuss your situation.