The Department of Justice hopes a new whistleblower program will help unearth more healthcare fraud cases.
The DOJ previewed the Corporate Whistleblower Awards Pilot Program earlier this year at the American Bar Association’s 39th National Institute on White Collar Crime. It builds on the agency’s prior efforts to incentivize reporting of corporate misconduct to the federal government.
How to Report
Starting August 1, 2024, whistleblowers can submit original information to DOJ’s Criminal Division about certain types of corporate crime by visiting this website. If DOJ’s prosecution results in asset forfeiture, the whistleblower may be eligible for a portion of that money.
The department said the program is designed to “fill in important gaps in federal whistleblower programs” and is modeled after successful whistleblower programs run by other government agencies.
The Award
The DOJ historically has used information from whistleblowers eligible for awards from its qui tam (whistleblower) program and other agencies’ whistleblower programs to uncover corporate criminal schemes, move forward with criminal investigations, and prosecute those involved. However, other agencies’ whistleblower programs do not cover the full spectrum of corporate crime that the DOJ investigates and prosecutes.
Only individuals (not companies or other entities) are eligible for an award. And, they must provide the DOJ with information from either personal knowledge or independent analysis. The information cannot come from publicly available sources.
Awards will be based on the “net proceeds forfeited”— the value of any assets DOJ forfeits after compensating eligible individual victims and paying other costs associated with the forfeiture. Whistleblowers may receive up to 30 percent of the first $100 million in net proceeds forfeited, and up to 5 percent of any net proceeds forfeited between $100 million and $500 million.
Preventing Retaliation
Because whistleblowers often fear retaliation, the DOJ said it will protect their confidentiality. If the agency learns of any attempt to prevent a whistleblower from sharing information, it will, when appropriate, open a criminal investigation into obstruction of justice.
To ensure that criminals don’t profit, the DOJ will not pay a whistleblower if they “meaningfully participated” in the criminal activity they report. However, some DOJ offices are taking part in pilot programs offering other benefits including the possibility of not being prosecuted for voluntarily coming forward. If an employee reports the misconduct internally before contacting the DOJ, they are still eligible for an award, so long as that employee also reports it to the department within 120 days of doing so. If the company then comes forward it may be eligible for leniency under DOJ’s Voluntary Self-Disclosure Policy.
In an Aug. 1 speech, Principal Deputy Assistant Attorney General Nicole Argentieri said: “With today’s announcements, we are telling employees: If you are aware of criminal misconduct at your company, now is the time to come forward to the criminal division. And our message to company executives and leadership is also clear: We are using more tools than ever before to identify corporate misconduct, so now is the time to make the necessary compliance investments to help prevent, detect, and remediate misconduct. And when misconduct does occur and companies are considering whether to make a self-report, please remember this simple message: Call us before we call you.”
What Does This Mean?
What does this mean to the healthcare industry? Healthcare companies should evaluate how effective their existing compliance program is and quickly investigate reported concerns. In addition, since DOJ has indicated that anyone found to interfere with the reporting of any violations faces criminal prosecution, companies would be well-advised to have internal policies and training in place.
How We Can Help
Whistleblower cases are highly complex and require the knowledge and skill of an attorney who has extensive and relevant experience. The Health Law Offices of Anthony C. Vitale is known for its representation of whistleblowers, as well as its ability to defend those who become the target of a whistleblower action. Whether you are a whistleblower or the target of a whistleblower action, our extensive experience and specialized knowledge will ensure your case is handled with exceptional skill and care.
In addition, our firm can help you to develop an effective program that allows you to identify and correct any problems before you become the target of an investigation.
If you or your company are the subject of an investigation an effective compliance program may help you mitigate or eliminate potential sanctions, penalties, and program exclusions. For more information, contact us at 305-358-4500 or email info@vitalehealthlaw.com
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