Data firm execs convicted for helping fraudsters target the elderly

Data firm execs convicted for helping fraudsters target the elderly

June 3, 2024 at 06:48PM

Former Epsilon Data Management LLC executives Robert Reger and David Lytle were convicted of selling consumer data for fraudulent schemes. The data was used to target individuals with personalized emails promising large prizes, leading to significant financial losses. Epsilon resolved its criminal liability with a $150 million penalty, compensating 200,000 fraud victims. Reger and Lytle face a maximum penalty of 20 years in prison per count. Decision on their sentence will be made on September 30, 2024.

Key takeaways from the meeting notes:

– Former senior executive and former sales manager of Epsilon Data Management LLC (Epsilon), Robert Reger and David Lytle, were convicted of conspiracy and multiple counts of mail and wire fraud for their roles in a scheme that provided targeted consumer lists to fraudsters over a decade.
– Epsilon is a data brokerage and marketing company specializing in collecting, analyzing, and selling consumer data to businesses for targeted marketing purposes.
– The scheme involved using transactional data from marketing clients at Epsilon to predict new “responsive buyers,” whose lists were sold to fraudsters. This led to hundreds of thousands of Americans losing large sums of money to fraudsters in a targeted, data-driven scam.
– Epsilon resolved its criminal liability in 2021 with a deferred prosecution agreement, paying $150 million in penalties, with $122 million allocated to compensate 200,000 fraud victims.
– Former and current employees’ testimonies were instrumental in convicting Reger and Lytle, who now face a maximum penalty of 20 years in prison for each count of mail and wire fraud.
– Sentencing for the convicted individuals will be decided on September 30, 2024, by the U.S. District Court for the District of Colorado.

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