The U.S. Department of Justice’s Antitrust Division has announced its first-ever whistleblower reward under the Antitrust Whistleblower Rewards Program, awarding $1 million to an individual whose information led to criminal enforcement against EBLOCK Corporation. The case resulted in a deferred prosecution agreement and a $3.28 million criminal fine, marking an encouraging success for the recently launched program.
Alleged Anticompetitive Conduct Following Acquisition
EBLOCK operates an online auction platform for used vehicles. In November 2020, EBLOCK acquired another online vehicle auction company. The DOJ alleges that after the acquisition, EBLOCK failed to take immediate steps to end unlawful conduct already occurring on the acquired platform. From November 2020 through February 2022, individuals associated with the acquired company conspired with another auction company to suppress and eliminate competition for used vehicles, in violation of Section 1 of the Sherman Act.
Bid-Rigging and Shill Bidding Allegations
Court filings further allege that EBLOCK failed to stop “shill bidding” on the platform. Fake bids were placed to artificially inflate vehicle prices, conduct charged as wire fraud under 18 U.S.C. § 1343. The alleged scheme involved sharing confidential bidding information, granting improper platform access, coordinating maximum bid amounts, and using software to place sham bids under the names of real auto dealerships without their consent. Profits were pooled and split among conspirators, and supporting documents were transmitted through the U.S. Mail.
DOJ Emphasizes the Role of Whistleblowers
In announcing the award, senior DOJ officials underscored the critical role whistleblowers play in uncovering criminal antitrust conduct. Deputy Assistant Attorney General Omeed A. Assefi stated:
“Whistleblowers serve as the Justice System’s greatest disinfectant against criminal antitrust conspiracies… This $1 million reward not only recognizes a whistleblower for bravely stepping forward to report crimes to the Antitrust Division, but also underscores the indispensable role whistleblowers will continue to play in the Division’s criminal enforcement program”.
DOJ officials also emphasized that whistleblowers may be eligible for awards even where the underlying criminal conduct has already ended, and occurred prior to the creation of the Antitrust Whistleblower Rewards Program.
A Concrete Signal to Antitrust Whistleblowers
The Antitrust Whistleblower Rewards Program authorizes awards ranging from 15 to 30 percent of monetary recoveries of at least $1 million. This agreement represents a concrete success for a newly established program and sends a clear signal to whistleblowers that insider information about anticompetitive conduct will be taken seriously and valued by the DOJ. For employees with firsthand knowledge of bid-rigging, price-fixing, or related schemes, this case demonstrates that coming forward can lead to meaningful enforcement outcomes and significant financial rewards.
If you believe you have information regarding bid rigging, shill-bidding or other types of anti-competitive behavior, we urge you to contact us for a free, confidential, consultation.