The DOJ’s New Pilot Programs: A Bane for Compliance Programs

Adam Studner’s commentary was included in an American Conference Institute article covering a new Department of Justice (DOJ) whistleblower rewards pilot program and the DOJ Criminal Division’s voluntary self-disclosure (VSD) pilot program for individuals.

Adam points out that the DOJ over the past several years has been doing everything it can to “clear a path for potential criminal misconduct to be brought to its attention – first by companies themselves and now by putative whistleblowers and individuals who engaged in wrongdoing—in exchange for potential benefits.” Whether these programs will bring forth more criminal investigations or resolutions will depend on several factors, “including what carrots the whistleblower pilot program ultimately offers and whether the benefits offered under both programs are perceived to be fairly and consistently applied,” he said.

Adam adds that “the emergence of yet another set of programs that encourage disclosures to the Department regarding corporate misconduct that, like other voluntary self-disclosure programs, put a premium on being first in the door, places pressure on companies to encourage employees to raise concerns internally and then to investigate them quickly and discreetly.”

He concludes that “companies should remain vigilant and continue to invest in proactively strengthening compliance programs, particularly through undertaking compliance program assessments, routine monitoring, and testing of higher-risk transactions and engagements.”

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