NEW DOJ PROGRAM PROVIDES WHISTLEBLOWERS WITH IMMUNITY

In addition to cash incentives for blowing the whistle on contractor non-compliance, the Department of Justice’s Criminal Division is now also piloting a program that will give whistleblowers immunity from prosecution.  The new program, “Voluntary Self-Disclosures for Individuals,” calls to mind the old Oprah Winfrey meme “You get a new car…!”  The idea behind the pilot is to encourage those implicit in wrongdoing to come forward so that the government can pursue civil, or even criminal, prosecution of those found to be in non-compliance with their contracts.  DOJ believes that some potential whistleblowers may have not previously come forward over concern that they could find themselves suspended, debarred, or worse, despite the well-known financial incentives provided to whistleblowers when the government exacts a recovery from offending companies.  The pilot lists a wide range of criminal activity for which non-prosecution agreements (NPA’s) may be available, including violations by or through public or private companies with 50 or more employees related to fraud against, or the deception of, the United States in connection with federally funded contracting, where such fraud does not involve health care or illegal health care kickbacks…”  DOJ does, however, hold potential whistleblowers to certain standards.  The pilot contains several eligibility requirements including that any self-disclosure be truly “voluntary,” that it be “truthful and complete,” and that the reporting individual “must agree to fully cooperate with and be willing and able to provide substantial assistance.” Would-be whistleblowers must also agree to give back any profit they made from the alleged wrongdoing.  That could work as a disincentive if the potential recovery is less than what they’ve already taken in.  Both contractors and their employees should take note of the new pilot.  It provides another tool in the contract compliance tool kit for government agencies.  Like any new gadget, there could be people just waiting to try it out.