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I noticed a domain in a recent Sedo auction that was entered without the Registrant's approval (or knowledge). Fortunately it did not sell, several bids but reserve not met. Surely this shouldn't happen, it's an invitation for complaints.
Was the domain parked at Sedo? If not you would expect Sedo to make extra security inquiries i.e. does the seller's name match the whois records? It would be interesting to hear Sedo's views on this and whether this happens often.
I had a domain recently that i added at sedo by mistake. I had entered it as .co.uk when in fact in owned the .org.uk. I was very surprised to see that sedo authorised ownership of the domain when the whois clearly stated i wasn't the owner. Needless to say i deleted the domain from my account however, i thought sedo would have checked properly.