Williams and Williams had a covert employee in attendance during the home auctions that placed bids on homes in order to drive up the price. The company makes money by placing a "buyers premium" on any homes sold equal to 5% of purchase price.
I know he was an employee because after the auction he entered the house, when we were filling out the paperwork, and locked the sliding patio door; in the house that we just bought. My husband brought it to my attention, and I didn't know if the man worked for the bank or the auction house. When I learned of the "buyers premium" it all made sense- that it must of been an auction house employee. It is only an infraction of the law-punishable by $100 fine, for an auction house to violate the law in that way.
No real incentive for ethical behavior.
Monetary Loss: $53.