ARTICLE
4 September 2024

DOJ Announces New Pilot Program For Voluntary Self-Disclosures: What You Need To Know

AP
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The Department of Justice (DOJ) has introduced a new pilot program aimed at incentivizing individuals involved in corporate wrongdoing to voluntarily disclose information.
United States Corporate/Commercial Law
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The Department of Justice (DOJ) has introduced a new pilot program aimed at incentivizing individuals involved in corporate wrongdoing to voluntarily disclose information. This initiative, highlighted by Principal Deputy Assistant Attorney General Nicole M. Argentieri, underscores the DOJ's commitment to enhancing accountability and uncovering hidden corporate misconduct.

Program Overview

The DOJ's Criminal Division has launched this pilot program to encourage individuals—excluding top executives and those who led the criminal schemes—to come forward with information about misconduct that has not yet been discovered by authorities. The key features of the program include:

  1. Eligibility for Non-Prosecution Agreements (NPAs): Individuals who provide a voluntary, truthful, and complete disclosure of previously unknown misconduct may be eligible for an NPA. This agreement would prevent prosecution provided certain conditions are met.
  2. Disclosure Criteria: To qualify, individuals must:
    • Disclose Voluntarily: The information must be provided before any government investigation or imminent disclosure threats.
    • Be Truthful and Complete: Disclosures must cover the full extent of the misconduct and the individual's involvement.
    • Cooperate Fully: Individuals must assist in the investigation and prosecution of other parties involved, including providing evidence and testimony.
    • Forfeit Gains and Compensate Victims: They must agree to forfeit ill-gotten gains and provide restitution to victims.
  3. Target Areas: The program focuses on disclosures related to:
    • Financial institutions and money laundering schemes.
    • Financial market integrity involving public or private companies.
    • Foreign corruption, including violations of the Foreign Corrupt Practices Act.
    • Health care fraud and kickback schemes.
    • Federal contract fraud.
    • Domestic corruption involving bribery or kickbacks.

Program Benefits

This pilot program aims to uncover misconduct that might otherwise remain undetected by offering incentives for early and honest disclosure. By encouraging individuals to come forward, the DOJ hopes to increase transparency and accountability in corporate environments.

Exclusions and Limitations

Certain individuals are excluded from the program:

  • Those with prior felony convictions or convictions involving fraud or dishonesty.
  • CEOs, CFOs, high-level officials, or individuals who organized or led the criminal scheme.

What You Should Do

If you believe you may be involved in wrongdoing, it is crucial to seek legal counsel immediately. Engaging a qualified attorney can help you navigate the complexities of this program and assess the potential benefits of cooperating with law enforcement.

Cooperating with the DOJ may offer significant advantages, including potential leniency and the opportunity to avoid prosecution. However, it is essential to approach this process with informed legal guidance to ensure that your disclosure is handled appropriately and that your rights are protected.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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