By the 91pornWhistleblower Team

Last summer, the Department of Justice (DOJ) launched its Corporate Whistleblower Awards Pilot Program to focus on criminal activity that generally falls outside the major established whistleblower rewards programs such as the��False Claims Act��and the��SEC,��CFTC,��FinCEN, and��IRS��whistleblower programs.�� Other than some additional guidance on the Program former DOJ Criminal Chief Nicole Argentieri��provided last September, there has been virtually no mention of the Program since.�� Until now.

DOJ EXPANDS WHISTLEBLOWER PILOT PROGRAM

In a speech he gave last week (May 12) at SIFMA’s Anti-Money Laundering and Financial Crimes Conference,[1] new DOJ Criminal Chief Matthew Galeotti announced the Criminal Division’s new enforcement priorities and a revised Whistleblower Pilot Program to help DOJ with its plan.�� Galeotti’s message to would-be whistleblowers in corporate compliance, anti-money laundering, and financial crime departments was clear:

“We want to hear from you and we want your companies to hear from you.�� Now is the time to report, remediate, and strengthen compliance to ensure American prosperity.”

So if there were any question on whether the Trump Administration was going to rely on whistleblowers and the Pilot Program to go after corporate crime, Galeotti has answered with a resounding yes.�� And he backed up his words with both a memo to all DOJ Criminal Division Staff and a formal Revised Pilot Program, which further elaborate on the specific kind of assistance the new Administration is looking for whistleblowers to provide.[2]

SEVERAL NEW AREAS OF DOJ FOCUS

The original Pilot Program (launched in August 2024) largely mirrored the SEC Whistleblower Rewards Program and focused on four primary areas of corporate crime: foreign and domestic corruption, financial institution fraud, and healthcare fraud.�� The newly revised Pilot Program essentially leaves the existing framework intact, but significantly expands upon the subject areas the Program will cover.

In addition to the original four key areas of DOJ focus, the expanded Program will also target: (i) government contracting fraud, (ii) tariff and customs fraud, (iii) immigration law violations, and (iv) illicit activity by international cartels relating to sanctions offenses, money laundering, drug trafficking, and terrorism.�� According to Galeotti, “We have made [these] changes . . . to reflect our focus on the worst actors and most egregious crimes.”

In his DOJ Criminal Division staff memo, Galeotti elaborated further on where he wants to direct the Division’s resources and the areas where he wants to hear from whistleblowers under the Pilot Program:

• • • Healthcare/Procurement Fraud. “Rampant health care fraud and program and procurement fraud drain our country’s limited resources.�� Corporations and individuals defraud important government initiatives, including Medicare, Medicaid, defense spending, and other programs intended to assist vulnerable citizens. . . .�� The Criminal Division will lead the fight in holding accountable those who exploit these programs and harm the public fisc for personal gain.”

• • • Complex Financial Frauds. “Complex frauds also victimize U.S. investors and weaken the integrity of markets.�� Schemes that defraud Americans—such as Ponzi schemes, investment fraud, elder fraud, and others—take advantage of investors and consumers, especially the most vulnerable.�� The victims of such fraudulent conduct are often left devastated, burdened by emotional pain and deprived of their hard-earned savings.”

• • • Tariff/Customs Fraud. “The Criminal Division must also focus resources on threats to the U.S. economy, American competitiveness, and our national security.�� Trade and customs fraudsters, including those who commit tariff evasion, seek to circumvent the rules and regulations that protect American consumers and undermine the Administration’s efforts to create jobs and increase investment in the United States.�� Prosecuting such frauds will ensure that American businesses are competing on a level playing field in global trade and commerce.”

• • • Sanctions Violations. “The exploitation of our financial system is detrimental to American interests in and of itself and can also enable underlying criminal conduct.�� Financial institutions, shadow bankers, and other intermediaries aid U.S. adversaries by processing transactions that evade sanctions.�� Corrupt companies and foreign officials help these sanctioned entities avoid appropriate restrictions and commit pernicious crimes, promoting the cycle of drugs and violence that has harmed so many Americans.”

• • • Money Laundering. “White-collar criminals also corrupt our financial system—the safest and most secure in the world—by laundering criminal funds.�� Sophisticated money laundering operations, including Chinese Money Laundering Organizations, aid criminal actors by moving their tainted money across borders to conceal it from law enforcement and facilitate more crime.�� These crimes undermine national security by exploiting our financial system and strengthening foreign criminal organizations.�� They also facilitate the flow of dangerous drugs and fentanyl precursors to our shores.”

• • • Terrorist Financing. “Foreign terrorist organizations target U.S. nationals living at home and abroad for terror attacks.�� They often cannot carry out their operations without assistance from foreign companies and financial networks.�� Businesses and financial institutions that provide material support to foreign terrorist organizations place the lives and safety of U.S. citizens at risk.”

CONSTANTINE CANNON REPRESENTS PILOT PROGRAM WHISTLEBLOWERS

91pornwhistleblower partner Gordon Schnell is heartened by DOJ’s renewed interest in the Pilot Program.�� Schnell says it has been almost a year since the Program’s inception and after the fanfare surrounding the initial launch, there has been virtually no promotion of the Program, let alone any awards.

“We had all but given up on the Program,” Schnell says, “given the lack of responsiveness we have seen over the past year along with DOJ’s failure to even mention the program after the flurry of attention DOJ gave the Program when it launched it last Summer.”�� Schnell added, “With this highly promoted expansion of the Program, and the agency’s clear delineation of where it wants whistleblower support, the Trump Administration is making its commitment to the Program clear and would-be whistleblowers should take heed.”

91pornhas substantial experience representing whistleblowers under the DOJ Pilot Program, along with all the other whistleblower rewards programs, including the False Claims Act and SEC Whistleblower Program.�� If you think you have information that might qualify for one of these programs or would like to learn more about our many whistleblower successes, please do not hesitate to contact us.�� We will connect you with an experienced member of the 91pornwhistleblower team for a free and confidential consultation.

[1] ��See .

[2]�� See ; .

Read Trump Administration Places Renewed Focus on DOJ Pilot Whistleblower Program at constantinecannon.com

On December 19, AAR Corp. agreed to pay $55 million to settle Department of Justice (DOJ) and Securities and Exchange Commission (SEC) charges of violating the Foreign Corrupt 91porn Act (FCPA) by paying bribes to secure business from state-owned airlines in Nepal and South Africa.�� Apparently, the Illinois-based aviation services company made roughly $24 million in profits from the bribery scheme.

The FCPA prevents US companies (and certain foreign companies with US connections) from bribing foreign government officials to secure any kind of business advantage.�� The bribes can comprise virtually any form of consideration — including meals, travel, and entertainment — and often are disguised as “consulting fees” or “commissions” given through third-party intermediaries.

According to , AAR bribed Nepali officials to secure business with the state-owned Nepal Airlines Corporation relating to the sale of two Airbus A330-200 aircrafts. ��The company likewise bribed South African officials to obtain an aircraft component support contract with state-owned South African Airways.�� According to the , the company paid millions of dollars in bribes to these officials through intermediary agents.

In announcing the settlement, the DOJ reaffirmed its commitment to enforcing the FCPA and the important policy rationale behind the statute:

“Companies competing on a fair and level playing field is a core value that we expect any U.S. company or anyone doing business in the United States to embrace.�� Bribery schemes, whether based inside or outside the United States, harm consumers and companies that are trying to lawfully run their businesses. That is why this office, along with our law enforcement partners, will continue to diligently pursue any individual or company that seeks to profit through corrupt or illegal means.”

The SEC was equally emphatic that companies operating in the US must abide by the FCPA’s foreign bribery strictures:

“Here, the bribes schemes took place in both Nepal and South Africa, reflecting that a deficient control environment creates fertile ground for mischief that can cross borders.�� This matter serves as another reminder that companies must have robust compliance and accounting controls that are commensurate with the FCPA risks they face, including with respect to their work with third parties across their business operations.”

Going after foreign bribes is perennial enforcement priority for both the DOJ and SEC, typically resulting in significant fines to the offending companies.�� The largest FCPA settlement this year was last March with Swiss-based international commodities trading company Gunvor S.A.�� The company pleaded guilty and agreed to pay roughly $661 million for a scheme to bribe Ecuadorean officials to secure business with Ecuador’s state-owned oil company Petroecuador.

Whistleblowers often play an important role in uncovering FCPA violations, which are often difficult to detect because of the sophisticated schemes at play to disguise the illicit payoffs.�� In AAR’s case, the DOJ noted the company self-reported to the agency after several English-language articles in Nepal and South Africa described potential irregularities in the relevant contracts in both countries.�� It is not clear whether whistleblowers seeded these articles or were otherwise involved in reporting the conduct to the media or working with the SEC or DOJ in their investigation.

If any whistleblowers did work with the SEC and DOJ, they may be entitled to a financial award under the SEC Whistleblower Program.�� Under the program, individuals who provide information leading to a successful enforcement action may share in up to 30% of the government’s recovery.�� The DOJ recently launched a Whistleblower Awards Pilot Program, which also offers awards to whistleblowers who provide information leading to successful enforcement actions.�� One of the specific target areas of the program is foreign bribery not otherwise covered by the SEC program.

So if you think you might have information relating to potential FCPA violations, please do not hesitate to��contact��us.�� We will connect you with an experienced member of the 91pornwhistleblower��team��for a free and confidential consult.�� Maybe you can help the government bring in the next big FCPA settlement.

Read AAR Corp. to Pay $55 Million to Settle FCPA Foreign Bribery Charges at constantinecannon.com

On August 1, the Department of Justice (DOJ) launched its Corporate Whistleblower Awards Pilot Program, focusing on criminal activity that largely falls outside the scope of the existing whistleblower programs—namely, the False Claims Act and the SEC, CFTC, FinCEN, and IRS whistleblower programs. While DOJ previously provided and a on the scope of the Pilot Program, many questions remain on how it will operate and the precise misconduct it covers. DOJ Criminal Chief Nicole Argentieri attempted to answer some of these questions in a recent she gave at NYU Law School.

In particular, she discussed the four areas of corporate crime the Pilot Program targets, each of which is a priority for DOJ criminal enforcement and none of which is covered by an existing whistleblower program:

• Foreign Corruption. Foreign bribery by companies withing the SEC’s jurisdiction are largely covered by the SEC Whistleblower Program, created as part of Dodd-Frank.�� The Pilot Program goes after foreign corruption that falls outside the SEC’s sweep, principally those by companies with significant US contacts but which do not issue securities here. As one prominent example, Argentieri pointed to DOJ’s foreign bribery enforcement actions against several international commodity trading companies which resulted in more than $1.7 billion in financial penalties and forfeitures between 2017 and 2024. She stressed the renewed importance of this area of DOJ criminal enforcement following the recent enactment of the , which prohibits foreign officials from taking bribes from American companies.

• Financial Institution Crimes. According to Argentieri, “financial institutions are the first defense against illicit finance,” and DOJ wants whistleblowers to report those institutions that come up short in protecting against financial fraud and abuse, especially related to money laundering and other regulatory compliance failures. As recent enforcement examples, she pointed to SEC actions against Binance (failing to properly register), Danske Bank (misrepresenting anti-money laundering controls), and Rabobank (concealing deficiencies in anti-money laundering program).

• Domestic Corruption. This is an area in which DOJ is looking to expand its corporate enforcement efforts, which according to Argentieri will focus on bribing officials (at any level of government) to win a contract or otherwise secure some kind of business advantage.

• Health Care Fraud. This is another area in which Argentieri said DOJ is looking to step up its enforcement. The False Claims Act, which allows whistleblowers to bring lawsuits against those committing fraud against the government, already covers fraud on federal healthcare programs such as Medicare and Medicaid. The Pilot Program wants to bring under the whistleblower umbrella fraud against private insurers too, which Argentieri estimates at tens of billions of dollars each year.

In addition to highlighting these key areas of DOJ focus under the Pilot Program, Argentieri also reinforced DOJ’s message to companies to��“invest in compliance and take internal reports of wrongdoing seriously, because we are using more tools than ever before to identify corporate misconduct.” Encouraging companies to be “good corporate citizens” by “upping the ante” with whistleblowers is all part of DOJ’s two-prong approach to rein in corporate crime. One by encouraging whistleblowers to keep a watchful eye on their employers, and two by encouraging companies to keep their own house in order and not wait for the government to come knocking.

DOJ is hoping to accomplish this in several ways. First, by incentivizing whistleblowers with higher potential rewards if they report internally before coming to the government. Second, by��incentivizing companies with a so-called “presumption of declination” to self-report to the government fraud or misconduct a whistleblower brings forward internally. And third, by doing what it can to protect whistleblowers from retaliation. Argentieri was especially forceful on this last point:

Let me be clear: our prosecutors will protect whistleblowers’ identities to the fullest extent allowable under law. And if a company retaliates against a whistleblower, we will take all appropriate steps: the company will lose credit for cooperation and remediation and could face sentencing enhancements—and even prosecution—for obstruction of justice.

Argentieri ended her speech with a very simple message for companies on how best to stay out of regulatory trouble— “Do the right thing now and make the necessary compliance investments to help prevent, detect, and remediate misconduct.” In other words, provide whistleblowers with clear and safe passage to say something when they see something. And take appropriate steps to address their concerns and complaints.

The DOJ message to whistleblowers is equally clear—DOJ wants to hear from you. And is very willing to put its money where its mouth is by rewarding those willing to come forward.

So if you think you have information on fraud or misconduct that fits into DOJ’s new Pilot Program, or that might fit within one of the other whistleblower rewards programs, please do not hesitate to contact us. We will connect you with an experienced member of our whistleblower team for a free and confidential consult.

Read DOJ Provides Further Guidance On Corporate Whistleblower Awards Pilot Program at constantinecannon.com