When multiple offers come in on foreclosed properties everyone ( all potential buyers ) normally are requested by the bank to submit their highest and best offers. Once all highest and best offers are received the seller ( the bank) will decide what offer to take. It's not always the highest price that wins. Banks sometimes accept lower offers that have terms that are more acceptable such as : A cash offer; Quick closing; No contingencies; or whatever is best for them. If you feel you have an ethics complaint you can contact the the MLS Realtor Association and file a complaint. They will advise you what action they will take and how the process works. They take ethics complaints seriously and will follow up with you.
All the best,