Ohio Woman Indicted for Bid Rigging & Auction Fraud | Attorney General Yost
Columbus, Ohio – A Columbus woman has been indicted on multiple felony charges in connection with an alleged scheme to artificially inflate prices in online auctions, Ohio Attorney General Dave Yost announced on .
The indictment, returned by a Franklin County grand jury, alleges that Lindsay Klein, also known as Lindsay Leslie, engaged in “shill bidding” – a practice where sellers use fake accounts to drive up demand and ultimately increase the final sale price of items. Yost, in a statement, described the practice as “criminal behavior,” adding, “Going once, going twice – going to court!”
According to the indictment, Klein, 36, operated the online business Priceless Discoveries and allegedly used fraudulent bidder profiles to place bids on approximately 760 auction items between and . The scheme is alleged to have inflated auction closing prices by roughly $9,000 during that period.
The investigation began after Capital City Online Auctions, the platform through which Priceless Discoveries sold merchandise, reported suspicious bidding activity to the Ohio Department of Agriculture (ODA), which regulates auctions within the state. A joint investigation between the ODA and the Attorney General’s Office followed, uncovering the alleged scheme.
The indictment details the alleged use of stolen personal information to create fraudulent bidder profiles. Specifically, prosecutors allege that Klein used a profile created with the stolen identity of a 55-year-old Columbus man, who was unaware his information had been used and had never participated in the auctions. His account frequently appeared as the second-highest bidder, artificially inflating the perceived demand for items.
Further investigation revealed that a 69-year-old Reynoldsburg woman’s bidder profile was also accessed and used without her knowledge or consent. The indictment alleges that Klein utilized a bidder profile in the name of her mother, Rhonda Kelley, to place hundreds of bids, at times creating the illusion of competition between accounts controlled from the same location.
The charges against Klein include one count each of price fixing, bid rigging, and telecommunications fraud, along with two counts of identity fraud. These charges fall under Ohio’s Valentine Act, the state’s antitrust law designed to prohibit practices that restrain trade and harm consumers. The case is being prosecuted by the Antitrust Section of Yost’s office.
The use of “shill bidding” is not unique to online auctions in Ohio, and represents a broader concern regarding fraudulent practices within the e-commerce sector. While the financial impact of this specific case is estimated at $9,000, the practice can erode consumer trust and distort market prices on a larger scale.
The ODA’s involvement highlights the increasing scrutiny of online auction platforms and the need for robust verification processes to prevent fraudulent activity. The joint investigation with the Attorney General’s Office demonstrates a coordinated effort to address such issues and protect consumers.
Klein is scheduled to be arraigned on . Indictments represent criminal allegations, and Klein is presumed innocent until proven guilty in a court of law.
Hannah Hundley, a spokesperson for the Ohio Attorney General’s Office, is the media contact for this case and can be reached at 614-906-9113.