Recently, the U.S. Department of Justice’s Antitrust Division announced that EBLOCK Corporation agreed to pay a $3.28 million criminal fine to resolve criminal antitrust and fraud charges in the Antitrust Division’s first-ever whistleblower case. The whistleblower was able to provide information that led to EBLOCK Corporation’s settlement, and for that information, the whistleblower received a $1 million reward.

Behind the case

EBLOCK Corporation offers an online auction platform for used vehicles. In 2020, EBLOCK acquired another online auction platform for used vehicles, Company A. When it was acquired, Company A was taking part in a bid-rigging conspiracy and fraud, but EBLOCK did not take immediate action against such activities. Between 2020 and 2022, individuals at Company A conspired with individuals at a separate Company B to suppress and eliminate competition for used vehicles sold on Company A’s online platform. At the same time, EBLOCK also did not take immediate action to end “shill bidding” on Company A’s platform whereby fake bids were placed to artificially increase the sale price of new vehicles.

In the end, EBLOCK Corporation agreed to pay a $3.28 million fine in a deferred prosecution agreement that requires it take remedial measures, including implementing an appropriate compliance program and cooperating with the Justice Department’s ongoing criminal investigation and any ensuing prosecutions.

The Antitrust Whistleblower Rewards Program

The Antitrust Division at the DOJ enforces antitrust crimes and offenses, including price fixing, bid rigging, and market allocation. As part of the Antitrust Whistleblower Rewards Program, the division works with law enforcement partners, the U.S. Postal Inspection Service, and the U.S. Postal Service Office of Inspector General to pay rewards to whistleblowers who report information about antitrust and related offenses that affect the Postal Service and result in criminal fines or other recoveries.

In cases where $1 million or more is recovered, whistleblowers may be eligible for between 15 and 30% of the amount recovered. As mentioned, in the case of EBLOCK Corporation’s settlement, the whistleblowers received a $1 million award. The DOJ has indicated that whistleblower reports are crucial to driving anti-trust investigations and therefore they are willing to pay out significant awards to whistleblowers who come forward and report these crimes.

About Us

Baron & Budd’s whistleblower representation team has more than 50 years of experience representing dozens of clients in government fraud cases. They have returned more than $6 billion to federal and state agencies with whistleblower recovery shares as high as 50%.

Please call (866) 845-2164 or complete our contact form if you would like more information. For more information, see What You Need to Know About Becoming a Whistleblower.