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Home News

Executives Convicted for Data Fraud Scheme

May 31, 2024
Reading Time: 3 mins read
in News
Executives Convicted for Data Fraud Scheme

Two former senior executives of Epsilon Data Management LLC, Robert Reger and David Lytle, were convicted for their involvement in a decade-long scheme that sold consumer data to fraudsters. The U.S. Department of Justice announced that these executives were found guilty of conspiracy and multiple counts of mail and wire fraud for providing targeted consumer lists to perpetrators of mail fraud schemes. Epsilon, a data brokerage and marketing firm, specializes in collecting and analyzing consumer data for targeted marketing. However, Reger and Lytle used this data to identify “responsive buyers” and sold detailed lists, including personal information, to scammers who targeted individuals with deceptive emails promising large prizes and wealth.

The scheme led to hundreds of thousands of Americans, particularly the elderly, losing substantial amounts of money. The data sold included full names, home addresses, email addresses, age, consumer preferences, and purchase histories. Although Epsilon as a company was not directly involved, it resolved its criminal liability in 2021 by paying $150 million in penalties, with $122 million allocated to compensate fraud victims. The convictions of Reger and Lytle were supported by testimonies from former and current Epsilon employees, including three employees and a former Vice President who had previously pleaded guilty.

Reger and Lytle now face up to 20 years in prison for each count of mail and wire fraud, with sentencing scheduled for September 30, 2024, by the U.S. District Court for the District of Colorado. This case highlights the severe consequences of data misuse and the importance of stringent data security practices to protect consumers from fraud.

Reference:
  • Epsilon Executives Convicted for Selling Consumer Data to Fraudsters
Tags: Cyber NewsCyber News 2024Cyber threatsCybersecurityDavid LytleDepartment of JusticeEpsilon Data ManagementMay 2024Robert Reger
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