The U.S. Department of Justice’s Antitrust Division has issued its first-ever whistleblower reward, granting $1 million to an individual whose information led to criminal antitrust and fraud charges against EBLOCK Corporation, an international operator of online used-vehicle auction platforms.
The whistleblower’s report resulted in a deferred prosecution agreement filed in the U.S. District Court for the Central District of California. Under the agreement, EBLOCK agreed to pay a $3.28 million criminal fine, implement remedial compliance measures, and cooperate with the government’s ongoing investigation.
According to court documents, EBLOCK acquired another auction platform, referred to as Company A, in November 2020 but failed to promptly stop unlawful conduct inherited through the acquisition. From November 2020 to February 2022, individuals at Company A conspired with individuals at Company B to rig bids and suppress competition for used vehicles sold through Company A’s online auctions, in violation of Section 1 of the Sherman Act.
The scheme involved sharing confidential bidding information, agreeing on maximum bid amounts, and maintaining a shared inventory of vehicles purchased through the conspiracy. In addition, Company A employees engaged in shill bidding, placing fake bids designed to artificially inflate prices. Software was developed to automatically submit fraudulent bids under the names of real auto dealerships without their consent, constituting wire fraud. The DOJ described the conduct as part of a $16 million scheme that harmed consumers nationwide.
The case was investigated by the FBI and the U.S. Postal Inspection Service. The DOJ emphasized that whistleblowers are protected from retaliation and may receive awards of 15% to 30% of amounts collected where their information leads to criminal fines or recoveries exceeding $1 million.