The US Government Is Paying a Whistleblower $1 Million for Exposing a Car Auction Bid-Rigging Scam
Attorney General Pam Bondi announced on Thursday that the U.S. Department of Justice (DOJ) and the United States Postal Service have issued the first-ever whistleblower reward. The whistleblower received $1 million for providing information that led to the prosecution of a $16 million used car auction bid-rigging scam.
The Department of Justice’s Antitrust Division’s Corporate Whistleblower Awards Program made the $1 million payout as its first-ever award. The information provided by the whistleblower helped the DOJ resolve criminal antitrust and fraud charges against EBLOCK Corporation. EBLOCK is a company that offers an online auction platform for used vehicles.
Why did the US Department of Justice prosecute EBLOCK?
According to a DOJ press release, in November 2020, EBLOCK acquired another online auction platform for used vehicles. After the acquisition, EBLOCK “did not take immediate action … to end the bid-rigging conspiracy and fraud” at the unnamed company, according to the deferred prosecution agreement.
Prosecutors stated that from November 2020 to February 2022, individuals at the company that EBLOCK acquired conspired with another company. They used “shill bidding” to suppress and eliminate competition for used vehicles on the online auction platform acquired by EBLOCK. By not acting, fake bids continued to be placed, artificially increasing the prices of used vehicles.
Justice Department and US Postal Service leaders speak out
“Whistleblowers serve as the Justice System’s greatest disinfectant against criminal antitrust conspiracies,” said Deputy Assistant Attorney General Omeed A. Assefi of the Justice Department’s Antitrust Division.
“A car is the second largest purchase most Americans will make in their lifetimes. This whistleblower helped expose a brazen $16 million scheme that made it more expensive for hardworking Americans to afford second-hand cars across the country.”
“In this case, the defendant used the U.S. Mail to send documentation related to the scheme; a scheme that valued illegal profits over protecting unsuspecting car buyers,” said Chief Postal Inspector Gary Barksdale.
EBLOCK must now pay a $3.28 million fine and undertake remedial measures. Those include implementing an appropriate compliance program and cooperating with the Justice Department’s ongoing criminal investigation and any resulting prosecutions.
“Under President Trump’s leadership, we will continue to fight against corporate collusion and monopolistic behavior — come forward and help us!” U.S. Attorney General Pam Bondi wrote on social media.
