On January 10, 2024, Damian Williams, the U.S. Attorney for the Southern District of New York (“SDNY”), announced the launch of the SDNY Whistleblower Pilot Program (the “Pilot Program”), a significant new policy that promises immunity from prosecution for certain individuals who voluntarily report criminal misconduct involving financial crimes and corruption.[1] Unlike other Department of Justice (“DOJ”) policies governing voluntary self-disclosures applicable by corporations, this policy applies specifically to individuals.
The Pilot Program holds the potential to provide invaluable protection to whistleblowers while at the same time significantly increasing incentives to self-report criminal conduct to the SDNY. This, in turn, is likely to increase the number of white-collar prosecutions investigated and brought by the SDNY. Indeed, the DOJ launched a similar immunity program for individuals in 1994 for criminal antitrust violations that was highly successful in dramatically increasing the number of criminal antitrust cases referred to the DOJ. The DOJ’s current Antitrust Leniency Policy is widely viewed to have been a “game changer” for the DOJ’s antitrust enforcement program.[2] Considering that immunized whistleblowers may also be eligible for substantial financial awards, it is easy to see how the Pilot Program could quickly increase the volume of voluntary reports to SDNY.
As discussed in further detail below, companies should immediately consider certain...
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