The US Department for Justice has launched a pilot prosecution immunity protocol for corporate fraud whistleblowers. It only applies to the first report received, so is intended to be an incentive for a “race to report”. Lisa Monaco, Deputy Attorney General, phrased it as “When everyone needs to be first in the door, no one wants to be second – regardless of whether they’re an innocent whistleblower, a potential defendant looking to minimize criminal exposure, or the audit committee of a company where the misconduct took place.” In order to qualify for the scheme
- An individual must voluntarily self-disclose original and non-public information about criminal misconduct.
- The information must relate to one of six types of violations committed by financial institutions or public or private companies, including money laundering, the integrity of financial markets, foreign corruption and bribery, healthcare fraud and illegal kickbacks, fraud related to federally funded contracting, and the payment of bribes or kickbacks to public officials.
- The information must be truthful and complete,
- The individual must fully cooperate with the DOJ in its investigation and prosecution, including by providing testimony and evidence.
- The individual must forfeit any profit from the misconduct and pay restitution or victim compensation.
- Certain individuals are ineligible for the pilot, including chief executive officers, chief financial officers and their equivalents.
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