DOJ And USPS Award First-Ever $1 Million Antitrust Whistleblower Reward

DOJ Announces First-Ever $1 Million Antitrust Whistleblower Reward

On January 29, 2026, the Antitrust Division of the U.S. Department of Justice (“DOJ”) announced its first-ever $1 million whistleblower reward. The whistleblower provided key information to the DOJ that resulted in the resolution of criminal antitrust and fraud charges against EBLOCK Corporation (“EBlock” or the “Company”), a digital auction platform for used vehicles. This resolution came in the form of a Deferred Prosecution Agreement (“DPA”), a contract between the DOJ and a defendant where prosecution of criminal charges is delayed until the defendant satisfies specific terms, such as admitting to wrongdoing, paying fines, or implementing compliance measures.

What Was the EBlock Antitrust and Fraud Scheme?

According to the DPA filed in the U.S. District Court for the Central District of California, Eblock acquired another online auction platform, “Company A,” in November 2020 but failed to take immediate action to end Company A’s fraud and bid-rigging conspiracy post-acquisition. Between November 2020 and February 2022, individuals at Company A conspired with individuals at another company, “Company B,” to suppress competition, in violation of the Sherman Act, which prohibits activities that restrict interstate commerce and competition in the marketplace. Eblock also failed to address Company A’s ongoing “shill building,” an illegal practice where a seller or a seller’s acquaintances place bids to drive up the price of a good.

As highlighted in the court documents, employees at Company A conspired with employees of Company B to exchange bidding information and mutually set a maximum amount either company would bid on vehicles. Company A employees provided Company B with unique access that allowed Company B to view confidential bidding data of other buyers and sellers on the auction platform. The two companies jointly kept an inventory of vehicles acquired through this bid rigging scheme, coordinated the resale of these vehicles, and organized the placement of shill bids with the intent to artificially increase prices paid by genuine buyers. Additionally, the two companies concealed the identities of these fictitious bidders during online auctions by arranging for the software to automatically submit shill bids using the names of real auto dealerships without their consent. Profits generated from this scheme were combined and distributed among the co-conspirators. Thanks to the whistleblower’s efforts, the scheme was exposed, and EBlock has agreed to pay a $3.28 million criminal fine.

Why Are Whistleblowers Important in Antitrust Enforcement?

Deputy Assistant General of the DOJ’s Antitrust Division, Omeed A. Assefi, underscored the importance of whistleblowers in protecting Americans from fraud: “Whistleblowers serve as the Justice System’s greatest disinfectant against criminal antitrust conspiracies,” he said. “A car is the second largest purchase most Americans will make in their lifetimes. This whistleblower helped expose a brazen $16 million scheme that made it more expensive for hardworking Americans to afford second-hand cars across the country. 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 of the DOJ’s Antitrust Division, Daniel Glad, reiterated this sentiment. “Today’s reward shows that the Antitrust Division leverages whistleblower reports to drive forward our investigations,” he said. “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.”

“Whistleblowers play a critical role in helping law enforcement to identify and investigate a wide variety of criminal activities,” said Mark Remily, Acting Assistant Director of the FBI’s Criminal Division. “In this case, information from a whistleblower led to the identification and dismantlement of a criminal antitrust conspiracy, that if unreported, would have continued to harm American consumers who were unknowingly overpaying for automobiles.”

What Is the DOJ Whistleblower Rewards Program?

As part of the fraudulent scheme, the co-conspirators used U.S. Mail to send documentation. Chief Postal Inspector, Gary Barksdale, stated that 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.”

The $1 million dollar award to the whistleblower comes only six months after the initiation of the DOJ’s new Whistleblower Rewards Program, which encourages potential whistleblowers to report antitrust crimes and other offenses, including price fixing, bid rigging, and market allocation. According to the DOJ, whistleblowers who voluntarily disclose original information regarding antitrust and related offenses that “result in criminal fines or other recoveries of at least $1 million may be eligible to receive a whistleblower reward…between 15 and 30% of the amount of the criminal fine or recovery.” Individuals who report these potential violations are protected under federal law from retaliation by their employers

How Does the DOJ Protect Whistleblower Confidentiality?

The DOJ’s Antitrust Division takes whistleblower confidentiality seriously: “The Antitrust Division will not publicly disclose any information, including information [a whistleblower] submit[s] to the Antitrust Division, that could reasonably be expected to reveal [his/her] identity, except as required by law or Department of Justice policy or for law enforcement purposes as determined by the Antitrust Division, in its sole discretion, or in connection with a judicial or administrative proceeding. At all times, the Antitrust Division takes reasonable steps to minimize the potential that the use will lead to [a whistleblower’s] public identification.”

Antitrust and Whistleblower Representation at Miller Shah LLP

The legal team at Miller Shah LLP has extensive experience handling antitrust and whistleblower matters. In July 2020, Miller Shah played a key role in uncovering a fraudulent scheme by Novartis Pharmaceutical Corporation, which led to a $642 million settlement to resolve False Claims Act violations.

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