The U.S. Justice Department’s Antitrust Division, working with the U.S. Postal Service, has made its first-ever whistleblower payout, awarding $1 million to a person whose tip uncovered a wide-ranging criminal scheme tied to a major online marketplace for used vehicles. The case, according to Newsweek, highlights a new push by federal authorities to financially reward individuals who come forward with information about antitrust violations and related fraud.
The whistleblower’s information led prosecutors to reach a deferred prosecution agreement with EBLOCK, an online used-car auction platform. Under that deal, the company avoids immediate criminal charges but must meet strict conditions, including paying a $3.28 million financial penalty. Federal officials said the payout marks the first reward issued under the Antitrust Division’s relatively new whistleblower program, which promises significant compensation when tips lead to criminal cases or monetary recoveries, per a Newsweek report.
Court filings show that EBLOCK purchased a rival auction business, referred to as Company A, in November 2020. After the acquisition, the company failed to quickly halt improper conduct that had already been taking place inside Company A. From late 2020 through early 2022, employees at Company A and another firm, known in court records as Company B, worked together to manipulate bidding on vehicles. According to Newsweek, they did this by secretly exchanging confidential bidding...
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