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The United States Attorney’s Office for the Central District of California has implemented a new voluntary self-disclosure whistleblower program to encourage individuals to disclose criminal conduct by or through companies, exchanges, and other financial institutions. Through the program, the government seeks to incentivize individuals to disclose previously unknown fraud, bribery, and other misconduct. Individuals who qualify for the program and fully cooperate with the government may be eligible for deferred or non-prosecution. Bienert Katzman Littrell Williams LLP Partner Rebecca Roberts, who specializes in government and internal investigations and criminal defense, provides answers to some frequently asked questions about this new program.
What types of entities are the government targeting?
The program seeks to expose criminal conduct undertaken by public or private companies, exchanges, financial institutions, investment advisors, and/or investment funds.
What kind of criminal conduct?
The government is targeting fraud or corporate control failures that affect market integrity, criminal conduct that involves state or local bribery, or fraud relating to federal, state or local funds.
What kind of conduct does NOT qualify?
Foreign Corrupt Practices Act violations, violations of campaign financing laws, federal patronage crimes, electoral process crimes, bribery of federal officials, federal tax offenses, and federal environmental crimes.
What conditions must be met to qualify for the program?
To be eligible for non-prosecution, the cooperating individual must:
- Disclose information not previously made public or known to the government
- Voluntarily disclose the information and not in response to a government inquiry or other reporting obligation
- Provide substantial assistance in the investigation/prosecution of at least one or more equally or more culpable persons
- Not play a leading role in the criminal conduct
- Be prepared to cooperate fully and testify, if requested
- Truthfully and completely disclose all conduct in which the individual is aware of or participated in
- Not be an elected official, agent of a federal investigative or law enforcement agency, or CEO or equivalent of the entity
- Not have a prior felony conviction
- Have not engaged in use of force, a sexual offense involving fraud, force, coercion or a minor, committed an offense involving terrorism or national security
What if the individual cannot meet all conditions?
Prosecutors may exercise discretion to extend deferred prosecution or non-prosecution in exchange for the individual’s cooperation when it serves the public interest and other factors are met.
Where does an individual submit a voluntary self-disclosure?
With the United States Attorney’s Office for the Central District of California at USACAC.VDP@usdoj.gov. Our highly experienced white collar defense and civil litigation trial attorneys at BKLW are available to assist and/or advise individuals contemplating the program.
