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Justice Department launches fraud whistleblower program with early awards

The new program offers $10,000 to $30,000 for qualifying fraud tips. The Justice Department says awards can follow criminal charges, while a White House description reported by AP sets out a different threshold.

The Robert F. Kennedy Department of Justice Building in Washington, D.C.
File photograph of the Robert F. Kennedy Department of Justice Building in Washington, D.C., photographed August 12, 2006. Coolcaesar, U.S. Department of Justice headquarters, August 12, 2006 (resized and converted to WebP). CC BY-SA 3.0.Image sourceImage licence: CC BY-SA 3.0
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The Justice Department announced a new fraud whistleblower program in Washington on October 20, offering $10,000 to $30,000 for qualifying tips that lead to criminal charges. The Fraud Whistleblower Incentive Program, or WHIP, is designed to pay awards earlier than programs that wait until a criminal case and its appeals are over, the department said.

The department said its National Fraud Enforcement Division created the program and will make awards at the Justice Department鈥檚 sole discretion after charges are filed. That means a tip does not automatically earn a payment when a case begins. The department said people who receive a WHIP award can remain eligible for additional awards under other government programs.

Which fraud tips qualify for WHIP awards

According to the Justice Department, eligible information concerns specified federal health care offenses and fraud involving programs or benefits administered by the departments of Agriculture, Labor, Health and Human Services, Housing and Urban Development, Education and Veterans Affairs, as well as the Department of War and the Small Business Administration. For health care cases, it said it will prioritize tips involving hospice, home health care, day care and special services fraud.

There is a material difference between the public descriptions of the award trigger. The Justice Department says information must lead to criminal charges. The Associated Press reported that the White House described eligibility as a tip leading to a fraud conviction or a significant federal enforcement action. It was not immediately clear how that White House description fits the department鈥檚 stated charge-based standard.

Funding and decisions on competing tips

The Justice Department said the Treasury Department is committing $25 million to implement the program. At an October 20 Oval Office event with Vice President JD Vance, President Donald Trump described payments as a 1% commission on fraud uncovered by a tip, according to AP. Trump also said he would decide disputes when more than one person claimed to have provided a tip. The department鈥檚 announcement places award decisions at its sole discretion; how those statements would operate together was not established.

The announcement followed an October 1 directive from Assistant Attorney General McDonald instructing division leaders to develop incentives for credible fraud information and make the policies public where possible. The Justice Department directs the public to america.gov/fraud to submit reports and has posted the program鈥檚 terms on its website.

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