The Antitrust Division of the U.S. Justice Department has given its first-ever whistleblower reward: $1 million to an insider who gave them a tip that led to a $3.28 million criminal fine for EBLOCK Corporation for rigging bids and committing fraud.
EBLOCK, which runs an online auction site for used cars, bought another platform (Company A) in November 2020, but the illegal activities continued. From late 2020 to early 2022, employees of Company A worked with competitors to share bidding data, limit bids, give unauthorized access, and place fake bids through custom software to drive up prices. This broke the Sherman Act and wire fraud laws.
The plan used the U.S. Postal Service for documents, which got the Postal Inspection Service involved. The deferred prosecution agreement requires the fine, changes to comply with antitrust laws, and full cooperation with ongoing investigations.
"Whistleblowers are the best way for the Justice System to clean up criminal antitrust conspiracies. This prize shows how important they are to law enforcement.
— Deputy Assistant Attorney General Omeed A. Assefi
The conspiracy made used-car prices go up across the country, which hurt consumers on one of their biggest purchases. The whistleblower's information was very important in revealing the scheme.
Authorities stressed that reporters of antitrust crimes should have strong protections against retaliation, including measures to keep their identities secret.
The program started six months ago with the U.S. Postal Service and gives 15–30% of recovered fines (at least $1 million) to people who give tips that lead to enforcement.
How the Scheme for Bid-Rigging Worked
Conspirators shared secret bids, set maximums, and used fake bids in the names of real dealerships to raise prices. They shared and split illegal profits while lying about who the bidders were.
The U.S. Postal Inspection Service said that the fraud was made easier by the abuse of the mail system and promised to go after these kinds of crimes with all their might.
What Antitrust Whistleblowers Do and What They Will Do in the Future
This case is a big step forward for the Antitrust Whistleblower Rewards Program, which encourages people who work for companies to speak up before they ask for leniency. Officials say that whistleblowers can help break up cartels and protect consumers faster.
Main Results
The resolution sets a precedent for future antitrust actions driven by whistleblowers by combining criminal penalties, compliance mandates, and ongoing cooperation.
✓ $1 million reward for the first-ever whistleblower in the Antitrust Division
✓ $3.28 million fine for EBLOCK Corporation for criminal activity
✓ Deferred prosecution with compliance program requirements
✓ U.S. Postal Inspection Service's job because of mail fraud
Federal law protects whistleblowers from being punished.
Why This Is Important for Consumers and Law Enforcement
The Antitrust Division wants to break up hidden cartels faster by giving rewards for early reporting. This will protect Americans from having to pay more for everyday things like used cars.
The program encourages insiders to act quickly, which could lead to faster corporate leniency applications and stronger competition enforcement.
The race is on now because employees and their lawyers have a reason to speak out and get to the Division's door first.— Deputy Assistant Attorney General Omeed A. Assefi
As investigations go on, whistleblowers will become more and more important in finding antitrust violations that hurt consumers all over the country.
