$1 Million Whistleblower Award Tied to Used-Car Auction Scheme

The U.S. Department of Justice has awarded $1 million to a whistleblower whose information helped expose a bid-rigging scheme involving online used-vehicle auctions, marking the first payout under the Antitrust Division’s relatively new whistleblower rewards program.

In a statement, the Justice Department said the award stemmed from information that led to a deferred prosecution agreement with EBLOCK Corp., an online wholesale used-vehicle auction platform. Federal prosecutors said the tip revealed a conspiracy that manipulated auction outcomes, inflated vehicle prices and affected millions of dollars in used-car transactions.

According to the Justice Department, the misconduct traces back to late 2020, after EBLOCK acquired another online auction company identified in court filings as “Company A.” Prosecutors said EBLOCK failed to immediately stop an ongoing conspiracy at Company A, allowing the scheme to continue for more than a year after the acquisition.

From November 2020 through February 2022, employees of Company A conspired with employees of a second firm, identified as “Company B,” to rig bids on vehicles sold through the online auction platform, the Justice Department said. The conspirators allegedly shared confidential bidding information, coordinated bidding strategies, and agreed on maximum bid amounts to suppress genuine competition.

Federal authorities said one of the primary tactics used in the scheme was shill bidding — the placement of artificial bids designed solely to drive up prices. Court documents state that the conspirators developed and used software that automatically placed fake bids in the names of real auto dealers without their knowledge or permission. Those bids created the false appearance of active competition, resulting in higher final sales prices.

The Justice Department estimated that the conduct affected approximately $16 million in used-vehicle transactions nationwide, increasing costs for buyers and undermining the integrity of the auction process.

EBLOCK entered into a deferred prosecution agreement with the Justice Department, agreeing to pay a $3.28 million criminal penalty and to implement enhanced compliance and monitoring measures. Under the agreement, prosecutors agreed to defer criminal charges as long as the company meets its obligations, including cooperation with any ongoing investigations.

The whistleblower award was announced by the Justice Department’s Antitrust Division, which launched its whistleblower rewards program in 2025 to encourage individuals to report criminal antitrust violations. The program allows qualifying whistleblowers to receive a percentage of monetary penalties collected in successful enforcement actions.

In a statement, the Justice Department said the $1 million award reflects the significant role the whistleblower played in uncovering the conspiracy and assisting the government’s investigation. Officials said the program is intended to supplement existing enforcement tools by incentivizing insiders with firsthand knowledge of illegal conduct to come forward.

The investigation involved multiple federal agencies, including the Federal Bureau of Investigation and the U.S. Postal Inspection Service. Prosecutors said the Postal Inspection Service participated because the conspiracy involved the use of U.S. mail in furtherance of the scheme.

Justice Department officials emphasized that whistleblowers are protected under federal law from retaliation and that their identities are kept confidential to the fullest extent possible. Under the antitrust whistleblower program, awards typically range from 15% to 30% of the penalties collected, depending on the value and originality of the information provided and the level of assistance offered.

The payment represents the first award issued under the program and signals an increased focus by federal authorities on uncovering antitrust violations in digital marketplaces, including those tied to vehicle sales and other consumer goods.

The Justice Department said it expects additional whistleblower awards as investigations progress and urged individuals with knowledge of criminal antitrust activity to come forward. The case underscores the government’s view that bid-rigging and price-fixing schemes harm consumers and distort fair competition, particularly in markets already under pressure from rising prices and limited supply.

The original reporting was based on Justice Department announcements and court filings related to the EBLOCK deferred prosecution agreement.