Whistleblowers Obtain New Pathway for Reporting as DOJ Pronounces Antitrust Whistleblower Reward Program

by Max Rodriguez and Bianca Beam

Left to proper: Max Rodriguez and Bianca Beam (pictures courtesy of Regulation Workplace of Max Rodriguez PLLC)

As mentioned in a previous publish,[1] final 12 months the Division of Justice introduced new pilot applications for whistleblowers within the following U.S. Lawyer’s Workplaces: the Southern District of New York[2]; Jap District of New York[3]; Northern District of California[4]; Central District of California[5]; District of New Jersey[6]; District of Columbia[7]; Southern District of Texas[8]; Northern District of Illinois[9]; Southern District of Florida[10]; Jap District of Virginia[11]; and the Western District of Virginia.[12]

Most notably, on August 1, 2024 Primary Justice’s Felony Division introduced the Company Whistleblower Awards (“CWA”) pilot program aimed toward high-priority legal violations involving bribery, healthcare fraud, sanctions evasion, and different company misconduct not already lined by an present reward program.[13] Though knowledge concerning the CWA program has been scant thus far, the information on whistleblower reward applications in different areas or run by different companies, together with the qui tam provisions of the False Claims Act, the SEC, CFTC, IRS, and FinCEN applications present the basic takeaway: whistleblower reward applications work.[14] They pay for themselves by growing recovered enforcement {dollars} and enhance the standard of the federal government’s investigations by invaluable data that initiates or advances issues.

However even when we don’t but know precisely how profitable the CWA program has been, DOJ clearly appears to assume it’s helpful as a result of they’re now doubling down on bespoke whistleblower reward applications. On July 8, 2025, the DOJ’s Antitrust Division introduced a brand new whistleblower reward program for choose legal antitrust issues (the “Antitrust Whistleblower Reward Program”).[15]

Beneath, we focus on the brand new program’s construction, its eligibility standards for potential whistleblowers, and takeaways about what this new announcement alerts about enforcement within the new administration.

As specified by the Memorandum of Understanding (“MOU”) that governs this system, the brand new Antitrust Whistleblower Reward Program is collectively administered with america Postal Inspection Service (“USPIS”) and the USPS Workplace of Inspector Common (“USPS OIG”).

This multi-agency construction is an uncommon one for a whistleblower award program. Nonetheless, within the specific case of antitrust, it’s a smart one. This joint whistleblower program is a logical extension of their present partnership given {that a} coordinated framework had already been established underneath the Procurement Collusion Strike Drive (“PCSF”), a nationwide enforcement effort to detect and prosecute antitrust violations and associated fraud affecting authorities procurement, grants, and program funding.[16] Established in 2019, the PCSF contains the DOJ Antitrust Division, over a dozen U.S. Attorneys’ Workplaces, the FBI, and Inspector Generals from key federal companies such because the USPS.[17]

The statutory division of labor reveals the logic behind the multi-agency construction. The Lawyer Common — supervising the Antitrust Division — has oversight and authority over all DOJ investigations regarding potential violations of the antitrust legal guidelines (and subsequently has remaining discretion over when an motion shall be pursued).[18] However, critically right here, the Postal Service is permitted not solely to gather fines, penalties and forfeitures stemming from issues affecting the Postal Service[19] but in addition “to pay one-half of all penalties and forfeitures imposed for violations of regulation affecting the Postal Companies, its revenues, or property, to the particular person informing for a similar.”[20]

Equally to the discretionary statutory authority that gave rise to the CWA program,[21] the construction right here follows the “what’s already within the toolbox” strategy by rejuvenating an present authority by the particular software of a whistleblower award program.

Because the reward mechanism comes from USPS’ statutory authority, the Antitrust Whistleblower Reward Program is essentially narrowed. The query is: how a lot? Not as a lot as you’d assume.

To doubtlessly recuperate an award, a whistleblower should report data regarding an “Eligible Felony Violation”[22] that impacts “the Postal Service, its revenues, or property” in a manner that leads “the USPIS Official to conclude that the Postal Service has suffered an identifiable hurt.”[23] Nonetheless, this “hurt needn’t be materials or in any other case pose any substantial detriment to the Postal Service.”[24]

Previous enforcement actions present the Postal Service doesn’t have to have been the sufferer of an antitrust scheme for “its revenues[] or property” to be implicated, confirming the limitation shouldn’t be fairly as slender as it will seem. Up to now, pursuant to its authority to “examine postal offenses and civil issues associated to the Postal Service”[25] USPS OIG has been concerned in civil and legal enforcement actions regarding price-fixing and bid-rigging schemes within the ready-mix concrete market,[26] asphalt-paving companies,[27] e-commerce and on-line retail,[28] stormwater and drainage infrastructure,[29] and even the pharmaceutical {industry}.[30]

This enforcement historical past reveals that the Postal Service’s involvement won’t must be central and even direct for a matter to fall throughout the scope of the Antitrust Whistleblower Reward Program. In consequence, reporting on a big selection of anticompetitive conduct to the federal government may give rise to whistleblower eligibility underneath this system’s requirements.

The eligibility standards for potential whistleblowers maps intently onto the standards from different present whistleblower reward applications. To qualify for an award, a whistleblower should:

“voluntarily present unique data relating to a possible or precise Eligible Felony Violation” which “USPIS determines fairly articulates a violation of regulation affecting the Postal Service, its revenues, or property, and this data results in a decision together with a legal “nice of a minimum of $1 million, or an equal restoration from a deferred prosecution or non-prosecution settlement . . . ”[31]

Info is offered “voluntarily” whether it is “particular, credible, and well timed” that’s “straight communicated”, “earlier than a proper demand” or inquiry “relating to the identical subject material” and “the place the person has no preexisting obligation in reference to a legal investigation or prosecution or civil enforcement motion to report data” . . . “together with as a part of an employer’s software to the Antitrust Division’s Company Leniency Coverage.” That is considerably the identical necessities on the CWA[32] and SEC whistleblower reward applications.[33]

Info is “unique” whether it is “truthful and full,” which means it’s: (1) “derived from impartial information” and never from public sources; (2) “not already recognized to the Antitrust Division, USPIS, or USPS OIG from some other supply;” (3) “not solely derived from an allegation made in a judicial or administrative listening to, in a authorities report, listening to, audit, or investigation, or from the information media, until the whistleblower is a supply of the data;”[34] and (4) “offered for the primary time after the” ratification date of the MOU.

As at all times, a wide range of potential exclusionary standards apply that might make a possible whistleblower’s data not unique.[35] Every of the standards should be absent for the whistleblower to be eligible for an award. The exclusion standards embrace that the whistleblower: had not (1) “coerced one other get together to take part”; (2) was not “clearly the chief or originator” of the exercise; (3) was not “an official, worker, or contractor of the Division of Justice, the Postal Service, or any regulation enforcement group” or a member of the family of 1 or somebody who “resided in the identical family” as one; and (4) the data was not obtained by (a) an lawyer consumer relationship; (b) the authorized illustration of a consumer; (c) an individual whose precept duties as an worker or contractor contain compliance or inside auditing; or (d) a way or method that violates the regulation.

Most notably, exclusion standards (1) and (2) sit considerably larger as a culpability threshold than the CWA’s use of the “minimal participant” definition from the Sentencing Tips because the ceiling for reward eligibility.[36]

The workflow for the Antitrust Whistleblower Reward Program is specified by very concrete and clear steps. These steps clarify for whistleblowers and their attorneys who’s the right level of contact, and in what sequence steps ought to be anticipated.

First: The Whistleblower submits data to the Antitrust Division, USPIS or USPS and the data is forwarded to the Antitrust Division for analysis.
Second: The Antitrust Division makes a willpower whether or not the data qualifies as an eligible whistleblower report, which means it comes from an Eligible Whistleblower and pertains to an Eligible Felony Violation, and if it does sends the data to the USPIS official for evaluation.
Third: The USPIS official will assess whether or not the data helps “violations of regulation affecting the Postal Service, its revenues, or property” per 39 U.S.C. § 404(a)(7) and informs the Antitrust Division of its willpower.
Fourth: If relevant, the Antitrust Division “will replicate in its data that the whistleblower report is doubtlessly eligible relying on the following investigation.”
Fifth: If the investigation “ends in a legal conviction and nice of a minimum of $1 million, or an equal restoration from a deferred prosecution or non-prosecution settlement, the Antitrust Division will approve the gathering of a portion of the legal nice or penalty by the Postal Service underneath 39 U.S.C. § 2601(a)(2).” Whereas the Antitrust Division has sole discretion in figuring out the quantity awarded to the whistleblower, it makes this willpower in session with USPIS and USPS and the whole reward shall be at a minimal 15% and a most of 30% of the recovered legal nice.
Sixth: The Postal Service will obtain twice the quantity of the decide whistleblower reward, retain half after which ship the remaining to the whistleblower.

Regardless that the primary six months of the Trump administration has carried substantial modifications to federal white-collar enforcement actions, the rollout of the brand new Antitrust Whistleblower Reward Program — shortly on the heels of a revised and mostly-expanded CWA program — reveals that DOJ’s enforcement priorities could also be shifting considerably, however they aren’t in full retreat.

This whistleblower reward program rollout additionally displays the persevering with recognition by federal authorities that whistleblowers are an indispensable a part of environment friendly and impactful enforcement coverage, and that it isn’t simply morally proper but in addition good coverage to supply them acceptable incentives that acknowledge their contributions and sacrifices. For whistleblowers and their counsel, the message is obvious: when you have credible, well timed, and particular details about antitrust misconduct impacting the Postal Service in even the broadest sense, this program could provide not only a viable, however a strong and well-structured path to reward—and justice.

Briefly, this isn’t simply one other whistleblower program. It’s a sign that whistleblowers are a welcome a part of the enforcement panorama, in a manner that will proceed to develop.

[1] Max Rodriguez, A Thousand Pilot Applications Bloom: DOJ Pushes Ahead to Additional Welcome Whistleblowers, out there at https://wp.nyu.edu/compliance_enforcement/2024/03/23/a-thousand-pilot-programs-bloom-doj-pushes-forward-to-further-welcome-whistleblowers/ (March 23, 2024).

[2] Division of Justice, U.S. Lawyer Williams Pronounces Enforcement Priorities And SDNY Whistleblower Pilot Program, out there at https://www.justice.gov/usao-sdny/pr/us-attorney-williams-announces-enforcement-priorities-and-sdny-whistleblower-pilot (Jan. 10,2024).

[3] Division of Justice, United States Lawyer Breon Peace Pronounces Whistleblower Non-Prosecution Pilot Program, out there at https://www.justice.gov/usao-edny/pr/united-states-attorney-breon-peace-announces-whistleblower-non-prosecution-pilot (Sept. 17, 2024).

[4] Division of Justice, U.S. Lawyer Ismail Ramsey Pronounces Insurance policies Underlying Whistleblower Pilot Program, out there at https://www.justice.gov/usao-ndca/pr/us-attorney-ismail-ramsey-announces-policies-underlying-whistleblower-pilot-program (March 18, 2024).

[5] Division of Justice, United States Lawyer Martin Estrada Pronounces Implementation of New Whistleblower Pilot Program to Facilitate Elevated Prosecutions of Excessive-Stage Wrongdoers, out there at https://www.justice.gov/usao-cdca/pr/united-states-attorney-martin-estrada-announces-implementation-new-whistleblower-pilot (Aug. 23, 2024).

[6] Division of Justice, U.S. Lawyer Philip R. Sellinger Pronounces Creation of Whistleblower Non-Prosecution Pilot Program, out there at https://www.justice.gov/usao-nj/pr/us-attorney-philip-r-sellinger-announces-creation-whistleblower-non-prosecution-pilot (Sept. 13, 2024).

[7]Division of Justice, U.S. Lawyer’s Workplace Pronounces Implementation of New Whistleblower Pilot Program, out there at https://www.justice.gov/usao-dc/pr/us-attorneys-office-announces-implementation-new-whistleblower-pilot-program (Sept. 16, 2024)

[8] Division of Justice, SDTX Whistleblower Non-Prosecution Pilot Program, out there at https://www.justice.gov/usao-sdtx/sdtx-whistleblower-non-prosecution-pilot-program (Sept. 16, 2024).

[9] Division of Justice, U.S. Lawyer’s Workplace in Chicago Pronounces Particular person Self-Disclosure Pilot Program, out there at https://www.justice.gov/usao-ndil/pr/us-attorneys-office-chicago-announces-individual-self-disclosure-pilot-program (Sept. 16, 2024).

[10] Division of Justice, U.S. Lawyer Lapointe Pronounces Southern District of Florida Whistleblower Non-Prosecution Pilot Program, out there at https://www.justice.gov/usao-sdfl/pr/us-attorney-lapointe-announces-southern-district-florida-whistleblower-non-prosecution (Sept. 13, 2024).

[11] Division of Justice, New Whistleblower Pilot Program encourages early voluntary self-disclosure of legal conduct, out there at https://www.justice.gov/usao-edva/pr/new-whistleblower-pilot-program-encourages-early-voluntary-self-disclosure-criminal (Sept. 14, 2024).

[12] Division of Justice, Whistleblower Non-Prosecution Pilot Program, out there at https://www.justice.gov/usao-wdva/whistleblower-non-prosecution-pilot-program (Oct. 3, 2024).

[13] Division of Justice, Felony Division Company Whistleblower Awards Pilot Program, out there at https://www.justice.gov/legal/criminal-division-corporate-whistleblower-awards-pilot-program (Could 12, 2025); see additionally, Division of Justice, Division of Justice Company Whistleblower Awards Pilot Program, out there at https://www.justice.gov/legal/media/1400041/dl?inline (Could 12, 2025) (“CWA Tips”).

[14] Securities Change Fee, Annual Report back to Congress for Fiscal Yr 2024, out there at https://www.sec.gov/recordsdata/fy24-annual-whistleblower-report.pdf (Nov. 15, 2024); Commodity Futures Buying and selling Fee, Whistleblower Program Buyer Schooling Initiatives, out there at https://www.whistleblower.gov/websites/whistleblower/recordsdata/2024-11/FY24percent20Customerpercent20Protectionpercent20Fundpercent20Annualpercent20Reportpercent20topercent20Congress.pdf (Oct. 24, 2024); Division of Justice, False Claims Act Settlements and Judgments Exceed $2.9B in Fiscal Yr 2024, out there at https://www.justice.gov/archives/opa/pr/false-claims-act-settlements-and-judgments-exceed-29b-fiscal-year-2024 (Jan. 15, 2025); Inside Income Service, IRS Whistleblower Workplace Working Plan, out there at https://www.irs.gov/pub/irs-pdf/p6074.pdf (April 18, 2025); Monetary Crimes Enforcement Community, Yr in Overview for Fiscal Yr 2024, out there at https://www.fincen.gov/websites/default/recordsdata/shared/FinCEN-Infographic-Public-2025-508.pdf (June 19, 2025).

[15] Division of Justice, Justice Division’s Antitrust Division Pronounces Whistleblower Rewards Program, out there at https://www.justice.gov/opa/pr/justice-departments-antitrust-division-announces-whistleblower-rewards-program (July 8, 2025).

[16] Justice Division, Procurement Collusion Strike Drive, out there at https://www.justice.gov/atr/procurement-collusion-strike-force (Nov. 5, 2019).

[17] Justice Division, Justice Division Pronounces Procurement Collusion Strike Drive: a Coordinated Nationwide Response to Fight Antitrust Crimes and Associated Schemes in Authorities Procurement, Grant and Program Funding, out there at https://www.justice.gov/archives/opa/pr/justice-department-announces-procurement-collusion-strike-force-coordinated-national-response (Nov. 5, 2019).

[18] 28 C.F.R. § 0.40(a).

[19] 39 U.S.C. § 2601.

[20] 39 U.S.C. § 404(a)(7).

[21] The CWA is statutorily licensed pursuant to twenty-eight U.S.C. § 524(c)(1)(C), which supplies that the U.S. Lawyer Common is permitted to pay awards in alternate for “data or help resulting in civil or legal forfeiture.”

[22] Whereas it’s on the discretion of the Antitrust Division to find out whether or not a possible or precise violation exists, the next classes of legal offenses are presumptively thought of Eligible Felony violations: (1) “Felony violations of sections 1, 2, and three of the Sherman Act”; (2) “Federal legal violations dedicated to effectuate, facilitate, or conceal violations of the Sherman Act”; (3) “Federal legal violations concentrating on or affecting federal, state, or native public procurement; and (4) “Federal legal violations concentrating on or affecting the conduct of federal competitors investigations or proceedings.” Antitrust Whistleblower Program MOU, § IV(A)(4).

[23] Memorandum of Understanding Between the U.S. Division of Justice, the U.S. Postal Inspection Service, and the U.S. Postal Service Workplace of Inspector Common Concerning the Whistleblower Rewards Program and Procedures, § IV(A)(4)-(5), out there at https://www.justice.gov/atr/media/1407261/dl?inline (July 8, 2025) (“Antitrust Whistleblower Program MOU”).

[24] Antitrust Whistleblower Program MOU, § IV(A)(5).

[25] 39 U.S.C. § 404(a)(6).

[26] Justice Division, Jury Convicts Two Executives in Longstanding Antitrust Conspiracy to Repair Costs, Rig Bids and Allocate Markets for Concrete, out there at https://www.justice.gov/archives/opa/pr/jury-convicts-two-executives-longstanding-antitrust-conspiracy-fix-prices-rig-bids-and (July 12, 2024).

[27] Justice Division, Firm Sentenced to Pay $6.5M Felony Tremendous for Bid Rigging in Michigan Asphalt Business, out there at https://www.justice.gov/archives/opa/pr/company-sentenced-pay-65m-criminal-fine-bid-rigging-michigan-asphalt-industry (Aug. 15, 2024).

[28] Justice Division, 5 Amazon Market Sellers and 4 Amazon Market Corporations Sentenced for Value Fixing, out there at https://www.justice.gov/archives/opa/pr/five-amazon-marketplace-sellers-and-four-amazon-marketplace-companies-sentenced-price-fixing (Aug. 23, 2023).

[29] Justice Division, Former Engineering Government Sentenced for Rigging Bids and Defrauding North Carolina Division of Transportation, out there at https://www.justice.gov/archives/opa/pr/former-engineering-executive-sentenced-rigging-bids-and-defrauding-north-carolina-department (Sept. 8, 2022).

[30] Justice Division, Main Generic Drug Corporations to Pay Over Quarter of a Billion {Dollars} to Resolve Value-Fixing Prices and Divest Key Drug on the Heart of Their Conspiracy, out there at https://www.justice.gov/archives/opa/pr/major-generic-drug-companies-pay-over-quarter-billion-dollars-resolve-price-fixing-charges (Aug. 21, 2023).

[31] Antitrust Whistleblower Program MOU, § IV.

[32] CWA Tips revised Could 12, 2025 at § II(4)(a)(i-ii).

[33] 17 CFR § 240.21F-4(a)(3)-(4).

[34] This language intently tracks the False Claims Act disclosure bar at 31 U.S. Code § 3730(e)(4)(A) and mirrors the language within the SEC whistleblower program at 15 U.S. Code § 78u-6(a)(3)(c) and the CWA Tips revised Could 12, 2025 at § II(2)(e)(3).

[35] Moreover, in cases the place the Whistleblower initially reported the Unique Info by inside compliance channels and the corporate later stories that data to the Antitrust Division, the whistleblower’s inside report shall be handled because the official disclosure date so long as the person stories to the Antitrust Division inside 120 days of both the inner report or their termination associated to it—whichever is later.

[36] CWA Tips revised Could 12, 2025, at § II(1)(e) n.4.

Max Rodriguez is Principal and Founder and Bianca Beam is Of Counsel at Regulation Workplace of Max Rodriguez PLLC.

The views, opinions and positions expressed inside all posts are these of the creator(s) alone and don’t symbolize these of the Program on Company Compliance and Enforcement (PCCE) or of the New York College Faculty of Regulation. PCCE makes no representations as to the accuracy, completeness and validity or any statements made on this website and won’t be liable any errors, omissions or representations. The copyright of this content material belongs to the creator(s) and any legal responsibility close to infringement of mental property rights stays with the creator(s).

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