“Call us before we call you.”1 With this message, on January 10, 2024, the Southern District of New York announced the SDNY Whistleblower Pilot Program (Pilot Program), which seeks to encourage individual participants in certain types of criminal conduct to voluntarily self-disclose and cooperate with prosecutors.2 The announcement echoed a nearly identical message delivered by the Department of Justice’s (DOJ) Criminal Division in November 2023,3 further emphasizing the growing importance of voluntary self-disclosure in the face of potential criminal violations. Although the Pilot Program is oriented toward individuals, it will certainly impact companies as they conduct internal investigations and weigh a decision to self-disclose. This is the first instance in which an individual US Attorney’s Office has reiterated the DOJ’s November 2023 pronouncement.
The Pilot Program broadly applies to criminal conduct undertaken by or through companies, exchanges, financial institutions, investment advisers, or investment funds involving fraud, corporate control failures, conduct that affects market integrity, and certain state or local bribery offenses. Of note, the Pilot Program does not apply to individuals who provide information related to violations of the Foreign Corrupt Practices Act (FCPA), certain election and campaign finance laws, or bribery of federal officials.
The Pilot Program provides that the SDNY will enter into a non-prosecution agreement (NPA) in exchange for...
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