A shill bidder never intends to pay for the item, they are there only to jack up the price. If they somehow screw up and get the high bid, the next highest bidder is approched and offered the item (although they can refuse it and can't be forced to pay). If the next highest bidder doesn't want it, it's stored until the next auction. This is highly illegal and will destroy the rep of any auction house. I only know this as one of my sisters owns an antique shop and attends auctions regularly.
As long as it's a charity item, CJ can bid whatever he wants in my book. If it wasn't a charity item and they "Sold It!!, Sold It!!, Sold It!!," immediately after his bid, it would be illegal and he would lose his rep.