Topic: I caught someone cheating in auction (Read 4269 times)

You are correct, I misread one of your messages... when the scammer asked for your business, you said "Perhaps soon". I've modified my feedback.
I have nothing personal against you except the fact that you are helping out someone that I believe is a scammer.
Based on the positive trades you've had, I'm going to convert it to neutral, but I really don't have a good feeling about you.

Are you serious?  https://i.imgur.com/4CqAz6o.png

What's your deal?  

It's quite clear that you don't have the best intentions of the community at heart.

You're just trying to make this personal.

It's not even close to being a legendary account and I don't even remember if it was Hero at the time.

Furthermore, nowhere did I openly state that I'd continue doing business with him.

You're resorting to lies now to try and embellish your unwarranted accusations?

Blatant trust system abuse IMO.

I'm surprised at some of the reactions here... are you all failing to see that he gave this free account over to a known scammer?

I can vouch that Doge Digital is an upstanding member of the Bitcoin community. I have done a plethora of transactions with him over the past few years and he has always been transparent and honest in these dealings.

I fail to see how he should be "shamed" for giving a forum account away for free during the holiday season to help someone out.

Yea that is my bad. I was looking at the incorrect account.

Either way, unless you can affirmatively confirm that it is not possible that ownership has changed then I don't think it is appropriate to tag someone as being an alt of a scammer. You can check this via the security log as well as addresses that have been posted in the past.

BabbaD aka superSTAR777 is a lowlife scammer who is generally uneducated and is bad at covering his tracks. He won't be able to scam more then $5 at a time. I'll check for more of his alts later today, although both tomatocage and myself have tagged dozens of his alts. I am fairly confident that dogedigital is not BabbaD because I know with decent certainty that he lives in a different part of the world as well as how each of them act.

This is beyond stupid.

First off, there are no rules against buying/selling accounts, of which I didn't even do.  Furthermore there are no rules or even suggested action to mark all accounts that are transferred.

There are however specific guidelines for leaving negative trust which you did not follow.  

This guy (who seems to be a kid) was broke, looking to to be hired for services so that he could work honestly and pay back everybody that he owes (which should be personal information).  

He was asking for anything and asked if he could use a spare account to make some money through signature campaigns.

I was at first a bit uneasy about handing an account over to him and had explicitly warned him not to do anything.  However, I never once had a problem with him on his services when I had ordered graphics from him (when I didn't see any type of accusations made against him) and he made me a what I believed to be a sincere promise not to (which I believe he kept [all his red trust comes from affiliation]).  

If I had reason to believe that he would use the account solely for malicious purposes, I wouldn't have given it to him.

So unless you want to keep the cop charade up and think that I am this person, I ask that you kindly remove your unwarranted negative feedback on my profile.

  

Where am I going wrong?

I have no doubt there are plenty of rich scammers around here, it doesn't mean they are going to stop scamming.
Some of the largest scams I've seen are conducted by accounts that, logically, shouldn't need to scam. But they do.

If you wanted professionalism, you should have publicly stated you were handing an account over to a known scammer.


You stated yourself that you gave this account over to Nauro on December 26/27th.

At that time, Nauro would have been red flagged by many and would have been highly untrusted.
(most of his negative feedback was posted at the beginning of December, and TomatoCage had linked him to other scammers back in January of 2015)
https://bitcointalk.org/index.php?action=trust;u=403195

You helped him out with a fresh account.

Its asinine to hand over an account to someone who is red flagged for scams.
Shame on YOU!

I'd also like to point out the fact that the account kaykawa has red trust only because it is linked to those other alts.

So by marking my account, you are saying that I am all those other accounts as well and yet you claim that you don't see any other proof other than a styling change.

 What exactly led you to believe that I am all those other people?

Honestly, this is absurd.  

You're so quick to tag people without doing any type of due diligence on the matter and then above that you have the audacity to label me as a shady account seller and point blank say that I am a scammer or do business with one?

You're simply trying to play cop and are doing a bad job at it.  

Shame on you ibminer.

I didn't sell the account.  I gave it away.  If it was up to me, all account sales would be banned.

I gave it to 'Supers Sonic' on skype.  Also goes by 'Nauro' on bitcointalk.  He did graphics for me in the past and kept hitting me up for work.  I didn't really want to pay him anything, but he was insistent and it was Christmas time, so I told him he could have my account to make money from signature campaign.  


---------------------------------------------------------------------------------

It's quite ridiculous that I now have to prove myself from these accusations.  

This was why I wanted my first purchase of the account to be private because I don't want any connections to it after I'm done with it and yet  I have to listen to your condescending 'shady' comments.  

I get that you're trying to 'help' the public.  I just really think it could have been handled much better and with actual professionalism.  

I'm part of 3 people that are trusted with over 1000btc in our possession.  A quick look into myself would have led you to the logical realization that I'd have no reason to involve myself in shady behaviour.  

I sent him a message today on Skype

[8:35:10 AM] Doge Digital: Dude, wtf?  I'm negative trust marked because of the account I gave you
[11:19:58 AM] supers sonic: this is hilarious !
[11:20:01 AM] supers sonic: simply tell them
[11:20:25 AM] Doge Digital: tell them what?
[11:21:24 AM] supers sonic: that u sold account
[11:21:24 AM] supers sonic: and its not against TOS
[11:21:49 AM] supers sonic: if you sell a account and the person who bought scams u dont are responsible
[11:21:54 AM] supers sonic: moreover u didnt sold priv keys
[11:22:03 AM] supers sonic: so no intentions to sell trust
[11:22:09 AM] supers sonic: moreover with kaykawa accunt
[11:22:13 AM] supers sonic: NO SCAM HA BEEN DONE !
[11:22:36 AM] Doge Digital: I'll see how it goes first.  It should be taken care of now.  I'll message if anything goes wrong further
[11:22:49 AM] supers sonic: please can you lin me though
[11:22:51 AM] supers sonic: I want to see
[11:22:59 AM] supers sonic: now what reason those guys generated
[11:23:07 AM] Doge Digital: https://bitcointalksearch.org/topic/m.15113090
[11:23:13 AM] supers sonic: really some guys there like lutpin , etc and just too much
[11:23:38 AM] supers sonic: u hacked his account ?
[11:23:46 AM] Doge Digital: whos account?  I don't know how to hack lol
[11:23:50 AM] supers sonic: well, u see I took account from you
[11:24:01 AM] supers sonic: he is saying he : Since that day, the account (kaykawa) was out of my control, the new owner was "Dogedigital".
[11:24:09 AM] Doge Digital: oh... no, i bought it from him
[11:24:16 AM] supers sonic: why he saying so then ?
[11:24:28 AM] Doge Digital: He's saying that he's not kaykawa
[11:24:35 AM] Doge Digital: he was saying that I was kaykawa
[11:24:43 AM] Doge Digital: which i was for like 3 months until i gave it to you
[11:24:50 AM] Doge Digital: but since you have red trust
[11:24:55 AM] Doge Digital: they're linking me to it
[11:24:56 AM] supers sonic: well, we can prove this that u sold it
[11:25:01 AM] supers sonic: I have proof !
[11:25:06 AM] supers sonic: how u want to know ?
[11:25:22 AM] supers sonic: a person messaged me that he owns me ( kaykawa account ) some 2 btc as he scammed him
[11:25:27 AM] supers sonic: I said sorry I have bought this accunt now
[11:26:08 AM] supers sonic: what the actual problem sis ?
[11:26:10 AM] supers sonic: is*
[11:26:18 AM] Doge Digital: Just that they think i'm kaykawa
[11:26:19 AM] supers sonic: He is clearly saying that he was the owner
[11:26:24 AM] supers sonic: no
[11:26:28 AM] supers sonic: see this post 1 min
[11:26:40 AM] supers sonic: @Dogedigital, I'm not throwing you to the fire, I quoted "when" i sold the account, and who was the "buyer".
Without that, how can I proove that i did it?.
[11:26:48 AM] supers sonic: looks like kaykawa was his account and got hacked ?
[11:27:32 AM] Doge Digital: no, I was saying that he was accusing me and trying to get people after me instead of him
[11:27:45 AM] supers sonic: ok and main thing
[11:27:48 AM] supers sonic: what wrong kaykawa did
[11:27:51 AM] supers sonic: ?
[11:27:58 AM] supers sonic: why they think kaykawa is scammer man ?
[11:28:22 AM] supers sonic: I mean why they looking who is kaykawa ?
[11:28:30 AM] supers sonic: that account scammed anyone earlier or what ?
[11:29:25 AM] Doge Digital: No
[11:29:34 AM] Doge Digital: Kaykawa has red trust
[11:29:38 AM] Doge Digital: Since they think i'm kaykawa
[11:29:42 AM] supers sonic: ohhh ..
[11:29:44 AM] Doge Digital: someone gave me red trust
[11:29:53 AM] supers sonic: must be lutpin idiot ..
[11:29:59 AM] supers sonic: anyways wait let me think something
[11:31:52 AM] supers sonic: see this
[11:32:04 AM] supers sonic: http://prntscr.com/bdwole
[11:32:25 AM] supers sonic: u can see I told him that I hve bought this account
[11:32:33 AM] supers sonic: so this is obvious, no ? that I have bought it ?
[11:32:50 AM] Doge Digital: i dunno.  just let it be for now i guess.
[11:32:57 AM] Doge Digital: I'll msg you if the guy still doesn't un mark me
[11:33:06 AM] supers sonic: ok
[11:33:14 AM] supers sonic: i am very sorry because of me you get red
[11:33:45 AM] supers sonic: shall I msg ibminer too ?
[11:33:50 AM] supers sonic: or wait til you guide me ?
[11:33:53 AM] Doge Digital: i'd just wait
[11:33:58 AM] Doge Digital: let's see if it corrects itself first
[11:33:59 AM] supers sonic: ok ..
[11:34:05 AM] supers sonic: ohok if not
[11:34:07 AM] supers sonic: I HAVE MANY PROOFS
[11:34:11 AM] supers sonic: we have skype history
[11:34:15 AM] supers sonic: which WE CANNOT CREATE
[11:34:17 AM] supers sonic: right ?
[11:34:20 AM] supers sonic: then we have that messages
[11:34:30 AM] Doge Digital: yea.  should be ok.
[11:34:32 AM] supers sonic: moreover once i remember was asked to sgn message and I fail to ...
[11:34:36 AM] supers sonic: anyways sorry .
[11:36:39 AM] supers sonic: andat last if nothing works , ask a mod to have a ip scan
[11:36:50 AM] supers sonic: clearly ur ip would be different from me .. range too i mean
[11:36:55 AM] supers sonic: anyways bye have to go for now.
[11:37:01 AM] supers sonic: any work for me any design ?
[11:38:25 AM] Doge Digital: Not at this moment.  Perhaps soon though
[11:38:41 AM] supers sonic: thanks, please let me know, I am always keen to design for you.

I like to keep trust issues out in the open so everyone can see what is going on.
Messaging a potential scammer to check with them just tips them off and they could just tell a few lies to delay the feedback for a few days and sell the account before they get tagged.

Everyone on this forum should be aware when accounts change hands. The only proof I have seen at this point shows you as the last owner of the kaykawa account. Outside of a writing style change, I have no reason to believe it switched hands again after you owned it. You unfortunately haven't shown any proof otherwise. If your being honest, who did you give away the account to and do you have any type of proof? 

If there is another person involved as of December, then that person appears to be linked to scammers due to an address posted in January. So are you a scammer, or are you doing business with one?

The fact that you guys all hide these account trades is shady in and of itself. If you want to sell your account, do it publicly so everyone is aware and neutral trust can be left on the account stating it has changed hands.

You are both running into a good reason why you should never sell your accounts.

"It's time to make the right question to him."

Just stop man.  ^ That's what you bolded.  

Why put emphasis on that when you didn't even reach out to me?  You're clearly trying to divert attention away from yourself and on to me.  That's cowardly.  

As I said before, I didn't sell it, I gave it away to a person that did graphics for me.

the new owner was "Dogedigital".
Maybe he sold the account later, or is the guy you are looking for.

Just suppositions

I'm not saying : "He's the guy, crucify him!"

I'm so sorry for this, but this situation is stressful for me, too.

You just need to prove that you sold the account before the scam accusations.
(TX id, sgined message, escrow quote,etc)

Are you joking me? 

"Since that day, the account (kaykawa) was out of my control, the new owner was "Dogedigital".
Maybe he sold the account later, or is the guy you are looking for.

It's time to make the right question to him.


https://i.imgur.com/CEYf3rz.png"

That's your exact quote.  You even went as far as to BOLD my name and the statement to ask me instead when you didn't even have the courtesy or balls to ask me or inform me of what was going on first. 

That's exactly throwing me to the fire. Think before you act.

About shill bidding (1 time in my own auction) and double-dip (BPB thread) with 2 alts, I did it, I'm not saying I didn't.
It was my fault, a big mistake, but i was "new" in the crypto world when i did it. (2014)

We learn of our mistakes, no one is innocent, we have done something wrong/bad in the past, and we are living with it.

And I need to pay JUST for that (I'm open to do a donation to some BTC/Charity entity).

I didn't run a Ponzi, and I'm not related/asociated with the owners of that accounts.

@Dogedigital, I'm not throwing you to the fire, I quoted "when" i sold the account, and who was the "buyer".
Without that, how can I proove that i did it?.

Anyway, you just need to show a signed message or something.

I gave the account away to a user that did graphics for me on Skype.  This was just after Christmas. 

I had the kaykawa account from July 31 (4:23:35PM) - December 26.

You can obviously tell the difference in the way we speak and that the account was used for graphics services (I absolutely suck at drawing).

The 'alts' connected to that account are all Indian based.  I am from Canada.  This is me (bitrated.com/dogedigital).  I am not Kaykawa and have no involvement in that account from Dec 26 onward.

You don't have that right.  That's the worst policy ever.  You explicitly agreed to keep the transaction private.

Especially knowing the nature of sold and transferred accounts, you need to contact me and see what actually happened instead of blindly throwing me to the fire. 

It was confidential until the account was used to scam users with a ponzi.

Then they started associating "kaykawa" account to me.

I was the Owner of Kaykawa account til July 30/2015.
I was the Owner of Betterangels account til Feb 26/2016.

In this case, the escrow/buyer/dates quotes are in my last posts.

I gave the account away several months ago.

Kind of stupid tagging me without asking me about the situation. Especially in something with a previous transaction that was supposed to be kept confidential.

Quite disappointed in alesx.  Next time try to clear things up in a sensible way instead of trying to throw everybody else to the wolves to save your own ass.

Alert the bidders and leave a PSA. If you can prove that these two guys are one and the same, I believe they deserve a negative rep or at least a neutral rep from DT.

Guys, the big problem here (for me), is that you are judging and asociating me to ponzi operations and scammers.
‎
As I said, there's public info about me in internet, due my participation in different forums (technology and business related).

Then, the point is that any victim of these guys (ponzi : betterangels/kaykawa) can easily start demand or call the police, due your "supposition".

I was the previous owner of these accounts (I received it from collateral, loans) in 2014 (The proof is above, and in the other pages), after some months I sold them. (escrow quotes and signed mesages).

My only ¿"crime"? here was use it to make '1' bid in my own auction (I did it, it's true) and claim a second time one of the "bipolarbob' giveaway.

I need to be judged for that, i'm consient (I did it, it was my fault, It were my first "steps" in this crypto-world)
And I need to be penalized just for that, nothing more.

example:

If you receive a car from a defaulted loan, you use it a few months, after that you sell it.... and in the next year the "car" is asociated to a "murder"/crime, and the people start searching the murderer/autor, and incriminate you.

What are you going to do?
Of course, show proofs that you sold the car (In this case escrow quoted and signed messages)
and
Give the info about the "buyer". (I did it too).

Then?.

What more did you need?.

As I said, first resolve this missurdestanding, and after that we can talk about the other things.

This is very important for me.

A little off topic but may I suggest maintaining a diary, so you can keep track of which account you sold to whom using which alt. It'll help you achieve more success in this profession.


I am sorry about that, I can see how that must have caused inconvenience for you when you tried to sell your main account. even though you left me negative trust mentioning that you would never do that.



-but you tried..


FTFY

Since that day, the account (kaykawa) was out of my control, the new owner was "Dogedigital".
Maybe he sold the account later, or is the guy you are looking for.

It's time to make the right question to him.


https://i.imgur.com/CEYf3rz.png

I received kaykawa in 2014 (collateral) from a default loan as "full member".

I'm searching the thread and proof.

I'm not envolved with any of these users.

I was wrong, editing...
______________________________________
______________________________________

My last post with "kaykawa" account was on: July 30, 2015, 12:54:01 AM (You can check the post history and writting style).

On January 16 I sold other account (collateral loan 2014/2015 too), not "kaykawa".
Kaykawa was sold in 2015, July 30th.

I'm searching the signed message and escrow quote.

In 2014 kaykawa (original owner) was looking a loan :

This was posted in my Thread :on: September 30, 2014

on: October 04, 2014 I started using the account.



==============================================
==============================================
KAYKAWA :


This was saved by @twister :
https://archive.is/i17Rn


That's the reason why he tagged me as " Account Farmer ".
=============================================
=============================================


I found it :

KAYKAWA :

I think this is just common to the auction section. It's a  strategy for them to start and it might be risky. It is just bad if someone would report or it eassily plotted. because it's really hard to sell if you are without a starting bidder.

And i don't think the right word cheating. Think of it as a risky strategy. Because if no one answered to your bid then your gonna have a bad time doing amends to what happened.

They're asociating my account with scammer accounts, who scammed people with ponzi.

The proove is above, also you can ask to escrow ( sebastian and shorena).

Quoting so it remains here.  You have to realize when breaking a giveaway rules and entering multiple times.... you are doing something wrong.    I don't think it can be blamed on language barrier.   You chances are can expect negative feedback... but not getting in trouble with forum's.

No shill bidding is going to make you look even worse.   It is again something I don't think a language barrier would make ok.  You have to know it is wrong to list a auction and bid it up.  Possible trouble with forums on this one not sure up to people much more powerful then me.

So we not have admitting to two not great things.  I think "Warning: Trade with extreme caution!" tag is likely to stay given character shown with act's like that.  But who knows I could be wrong.

Giveaway?
Yes, I did it (that time I was "new" in the btc world), and as you can see my english isn't my native language. that time I just was looking a way to earn/get some satoshis, but don't doing scam or something illegal.

I was using a paid signature too (bitstars and after :bitmixer).

After some hours of reading about the community, btc and altcoins I stopped using my "account" to get some kind of income. (SPAM signature, the current big problem in the content in this forum).

Then I started using my signature with a NO-paid sig campaign, as you can see.

2nd, the bid issue, I did it too, but I was just one time. (The digital "batman" key, obtained as a gift from buying a nvidia card @ amazon.
.

Like I said, i'm very transparent, I could easily delete the post and hide the evidence months ago, but I didn't.

"who owes nothing fears nothing."

in this case : If you have nothing to hide, you have nothing to fear.


(sorry my bad english).

So are you admitting you used a shill to bid up a auction?   You are kinda trying to move it down the road... but I think it is important and shows character of person.  It sounds like your admitting it just making sure.

Also what about the "double-dip in a free giveaway by BiPolarBob" do you admit to doing that?

I'd say all the way down to china. But wait for the "account changed hands" argument, ain't no way to counter that.

i remember seeing back dipping in the forums when the auctions were crazy busy.  if the bidding got higher quick, someone would try sneaking in a lower amount and hope that the only person that catches it is the next bidder, thus bringing the price back down to where that person could afford and maybe the others had moved on from the auction.  Sometimes worked, anyone that caught claimed a mistake or mistype

Interesting... so since they are now linked to kaykawa, I assume its safe to now link alesx.onfire & betterangels to this list:
https://bitcointalksearch.org/topic/alts-of-scammers-shield-scam-report-2-1329109

Looks like kaykawa can also be linked to txbtc, txbtc can be linked to JosIzem and you can see all of the alts of JosIzem

So how far does this rabbit hole go?? 

I would have, he has another alt https://bitcointalk.org/index.php?action=trust;u=205560 which also has negative trust but then there is always the alibi that the account was sold, even though sales can be faked. Person selling the account can buy the account themselves with an escrow in between.


He Triple-dipped actually and that's just unhygienic.

https://bitcointalksearch.org/topic/m.9630834 Archive: http://archive.is/FBlPp#selection-6345.0-6338.4
https://blockchain.info/tx/5b9857ec5f5599173aa075ec9cf681b91c0d8596e07ab34f7fa8105fc5d2cf73

If you think that "only" double-dipping in BPB's giveaways is greedy, then you should take a look at this

I've updated my post... he also used the alt to double-dip in a free giveaway by BiPolarBob.

Greed has consumed this one. 

https://youtu.be/P_RVL7m7OLo

Well, you nailed him with the tx you posted. "Both connected here: https://blockchain.info/tx/d1960da7baecf24175a8fc8a27ea54f501a5a635fd58d6a484387c1ac1aae0d3"

Apart from the bidding part,the shill account is accused of running Ponzi's with multiple negative feedbacks.How soon should we wait to see the main account tagged by this reference ? Twister it would be nicer if you make a thread in the scam accusations thread.

That is a interesting idea of having the account pay a penalty for misrepresenting themselves in a auction.
Making it double the amount they are seeking should stop higher accounts from doing it but what about the lower accounts which many use to hide behind?

They should be penalized.

x10 the difference between the highest bid before the shill bid and the shill bid to mods*.

*me, if they aren't interested

I also think this is bad, added about this in the list I created earlier.



Hope you guys stay true to your words..

Account auctioning goods: https://bitcointalksearch.org/user/alesxonfire-329021
Shill account used to up the bid: https://bitcointalksearch.org/user/betterangels-361617

Auction thread: https://bitcointalksearch.org/topic/steam-key-batman-arkham-knight-pc-trusted-member-1073157 archive: http://archive.is/sEJ9R

Shill account uses this address 1LN3DgFutZDzUnovVKFvTBeFYvHcwWVE9k here: https://bitcointalksearch.org/topic/m.11060213

Account auctioning goods uses this address 18Qu6rym9WA3G1GJEWZSPn8ifA1eckMtdC here: https://bitcointalk.org/index.php?topic=1364280.msg13878564%23msg13878564

Archive: http://archive.is/bRVTc and http://archive.is/lXdFR#selection-1975.0-1975.34

Both connected here: https://blockchain.info/tx/d1960da7baecf24175a8fc8a27ea54f501a5a635fd58d6a484387c1ac1aae0d3

Account one also tips his own shill account here: https://bitcointalksearch.org/topic/m.11060237  
https://blockchain.info/tx/161fdbc9636a04ca226af1c39aa2e3af0f727c79614695f73d9bbe73e3d4377b

He has done other auctions as well, I guess it is safe to assume, he probably would have done the same other times also with different alts.

I denied doing it and I explained myself in the first post.

agree, shill bidding is purely for the aim to extort additional funds from forum members and bang out of order.

If you have a minimum price in mind set a clear reserve or start price.

Yes, it is bad and should not be done

This is a internet forum a innocent person would not go file charges over this.  But they would deny it and say they did not do it, which you still have not did.   Not say how do you know I did it? I think and that is just my 2cents.

Are you denying doing it?  Or just denying no one has proved it?

Well, yeah, an innocent person would also file charges for false allegations. If I said that I didn't do it, what are the odds of him believing me? He'll probably raise up some other affiliation like followed comments etc. so I just asked him a straightforward question.

It also looks bad for him, I think a innocent person would say that they did not do it and are innocent.  He asks how can they say he was involved.   So kinda shady on that  part.


Above is just part of quote go above for full

Shill bidding is bad and I would drop a negative on someone for it. There is just no justification for doing it other than being greedy.

I just came across this thread after searching the Meta section for my name. Anyway, how can you say that I'm involved in cheating an auction? I bought the account at the BIN price because that seemed pretty cheap for a Member account.
But, yes, I have witnessed some users that bump up their sales thread and/or give false feedback to themselves with alt accounts because I have had experience buying one from a user that did so.And up to now, I have no idea what that "something" is.

I think this is the account : lolgato1

You can see his bid in this auction thread which was right after the OP's.Maybe magic is me is involved as well.

https://bitcointalksearch.org/topic/m.14532465

Please report the PM to me directly. Who is the alt account? Magicisme? If so he's already got negative for something.

As for proof he openly admitted to me that he bumped the price higher with the account he is selling.


I won't really give a big fuss about it since the amount is only small but as for honesty, I think this action is an obvious attempt of fraud and shouldn't be encouraged.

You can read it any way you please sweetpea.
Its not worth enough on its own to interest law enforcement but I'm hoping there are enough members with trust who will eventually take notice and get out the red brush.

edit: for spelling correction

I read this like autistic kid was blurting it out mid conversation and it made me smile.

So you looking to take this case to court or you just letting us know how smart you are for knowing such facts?

It's called shill bidding.  It is wire-fraud - a federal crime.  Ergo anyone participating in such a scheme is conducting a scam.  An illegal scam - do you need any more justification that that to give a negative rep to all alts involved? 

The person risks no one biting,if people get into a frenzy because others are involved they need to figure out better ways of going about buying in a auction,long run they will overpay way to often.
Its always buyer beware and you need to figure things out mostly on your own or get duped when some one is not there to hold your hand.
Not saying it isn't shady but you need to lock down proof of such thing and not let it turn into a he said,she said situation.

Allowed it or not I think it's a negative trust for sure!

OP, I just want to ask what proof do you have to say that the auctioneer is using his alt and upping his prices? You know we can't just go and conclude without looking at both sides of the equation.
To answer to your question, I don't think it isn't legal since it's a risk he's taking. If he truly is using an alt and raising bids, he is risking that he might overbid and nobody else would bit on it anymore.

Not necessarily. He'll likely just use it to bump up the price then contact the other highest bidders and offer them it if the price is reasonable. I would leave negative if there was reasonable evidence for the behaviour.

How do you "penalize" users around bitcointalk ? Isn't "negative rep" the term you are looking for ?  I don't think raising bids by the Alt should be a problem.Eventually he will end up having the highest bid with his product unsold.

Also,you can probably disclose their profiles instead of playing the hide and seek game.

If you have any problem with the auctioneer you can make a report on him in reputation section. i don't think this type of act is harmful to anyone as one always wants higher profit.

This is allowed, however it is generally frowned upon within the community. See this thread for details.

If you wish to open a scam accusation against this person you are welcome to do so.

Hey, So I saw someone in the auction who cheated in raising the bid with his alt. Is it allowed here or should the user be penalized for this?