Mandatory Awards are Most Necessary Component of New DOJ Whistleblower Program
The U.S. Department of Justice (DOJ) is continuing to engage with whistleblower experts on how to establish an effective whistleblower rewards program. According to one expert, the most important step the DOJ can take is to conform their payment of whistleblower awards with the protocols of the United States’ other highly successful whistleblower programs.
In a letter to Deputy Attorney General Lisa Monaco, whistleblower attorney Stephen M. Kohn of Kohn, Kohn & Colapinto explains that the DOJ must administer the Asset Forfeiture Fund (the statutory basis for the DOJ program) in line with the best practices found in other programs, such as the SEC Whistleblower Program. Most notably, whistleblower awards under these other programs are mandatory and based upon a percentage of the proceeds collected by the government thanks to the whistleblower’s disclosure.
“Conforming the management of the Fund to existing successful whistleblower laws is the single most important reform the Department can undertake to incentivize whistleblowers, deter frauds, and enhance accountability,” writes Kohn.
Kohn outlines how time and time again, Congress has recognized that discretionary whistleblowers award programs fail to incentivize whistleblowers and has reformed these programs to include mandatory awards. Most recently, Congress passed the AML Whistleblower Improvement Act to make awards mandatory under the AML Whistleblower Program after the program faltered when awards were discretionary.
Kohn previously authored another letter to the DAG outlining other recommendations for the DOJ whistleblower program. Kohn spoke to Compliance Week about this letter.
