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By Sam Stevenson
Associate News Editor
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The Justice Department’s Antitrust Division and the U.S. Postal Service (USPS) have issued their first‑ever whistleblower reward, granting $1 million to an individual whose tip helped expose a criminal antitrust and fraud scheme involving a major online used‑car auction platform.
Why It Matters
It marks the first payout under the Antitrust Division’s whistleblower rewards program, signaling that individuals who report original information leading to criminal charges or recoveries will be eligible for significant awards, the Department of Justice (DOJ) said.
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What To Know
The whistleblower’s tip led federal prosecutors to reach an agreement with EBLOCK, a company that runs an online marketplace for buying and selling used cars.
Under this deal, called a deferred prosecution agreement, EBLOCK avoids immediate criminal charges but must follow certain conditions, including paying a $3.28 million fine.
According to court documents, EBLOCK bought another used‑car auction site, known as Company A, in November 2020. But after the purchase, EBLOCK did not move quickly to stop the bid rigging and fraud that employees at Company A were already committing.
Between November 2020 and February 2022, employees at Company A conspired with employees at Company B to suppress competition by sharing confidential bidding information and agreeing on maximum bids for certain vehicles, according to the DOJ.
Company A also gave Company B special access that let it view the private bidding data of other buyers and sellers, according to a Criminal Information and Deferred Prosecution Agreement filed in the U.S. District Court for the Central District of California.
Prosecutors say the co‑conspirators kept a shared inventory of cars purchased through the scheme and coordinated to relist those vehicles while placing fake “shill” bids designed to push prices higher for legitimate buyers. The bid‑rigging aspect of the scheme violated the Sherman Act, 15 U.S.C. § 1.
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Some of these bids were generated through software that used the names of real auto dealerships without their consent. Documents relating to the scheme were also sent through the U.S. Mail.
Deputy Assistant Attorney General Omeed A. Assefi said the whistleblower “helped expose a brazen $16 million scheme that made it more expensive for hardworking Americans to afford second‑hand cars,” adding that the $1 million award shows how quickly whistleblowers can now outrun companies seeking leniency.
Acting Director of Criminal Enforcement Daniel Glad said the reward demonstrates how whistleblower reports help drive investigations forward, even after criminal activity has ended.
FBI Acting Assistant Director Mark Remily said the tip enabled authorities to identify and dismantle an antitrust conspiracy that would otherwise have continued harming consumers. Postal Inspection Service Chief Gary Barksdale noted that the award comes only six months after the whistleblower program launched, underscoring the agency’s commitment to pursuing those who misuse the mail.
In addition to the fine, EBLOCK must implement compliance measures and continue cooperating with the Justice Department’s ongoing criminal investigation.
The FBI and the U.S. Postal Inspection Service investigated the case, which is being prosecuted by attorneys from the Antitrust Division’s Washington Criminal Section.
The Antitrust Division works with the U.S. Postal Inspection Service and the U.S. Postal Service Office of Inspector General to pay rewards, and whistleblower awards may range from 15 to 30 percent of money collected when tips lead to at least $1 million in fines or recoveries, the Department said.
What People Are Saying
Deputy Assistant Attorney General Omeed A. Assefi of the Justice Department’s Antitrust Division said: “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. Remember, the first company in an antitrust cartel that reports its collusion to the Antitrust Division might receive Leniency — but the race is faster now, because employees and their attorneys are incentivized to blow the whistle and beat their companies to the Division’s doorstep.”
Acting Director of Criminal Enforcement Daniel Glad of the Justice Department’s Antitrust Division said: “Today’s reward shows that the Antitrust Division leverages whistleblower reports to drive forward our investigations.
“If a whistleblower provides new information that ultimately assists the Antitrust Division in bringing charges, the whistleblower might receive a significant award — even if the criminal activity has already ended.”
Chief Postal Inspector Gary Barksdale said: “The Postal Inspection Service does not tolerate this abuse of the U.S. Mail or its customers and will pursue these types of criminals wherever they are."
What Happens Next
EBLOCK will implement compliance measures and cooperate with the DOJ's ongoing criminal investigation under the deferred prosecution agreement, according to the announcement, and investigators will continue any resulting prosecutions as warranted.
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