The carrot or the stick … which motivates compliance conduct more? Consider it a rhetorical question for now, but it's once again a tactic being deployed by the U.S. Department of Justice to motivate or cajole corporate compliance. In separate announcements over the past several weeks, DOJ dangled two new “carrots” in front of companies involved in fraud investigations and criminal cases. Prior to that, the Department also reminded the public about the significant consequences of finding your business weighed down by DOJ scrutiny in reporting a record year of False Claims Act (“FCA”) settlements and recoveries from the federal government's previous fiscal year, ending September 30, 2022.
Most recently, on March 2, 2023, while speaking at the ABA's annual white collar crime conference, Deputy Attorney General Lisa Monaco announced that DOJ is launching a three-year test program that will offer reduced fines to corporations that commit crimes if the company acts to claw back compensation previously paid to executives and employees responsible for the illegal conduct. Additionally, DOJ will require companies that reach a criminal resolution to restructure compensation and bonus programs to punish bad behaviors in the future. Monaco stated in her remarks: “Nothing grabs attention or demands personal investment like having skin in the game, through direct and tangible financial incentives.” This announcement is an extension of...
Blow the whistle, get paid. A Justice Department bounty program that incentivizes employees to blow the whistle on their employers could lead to more whistleblowing as the Trump administration inte...