A fraud scheme that operated for 10 years and brought millions of dollars in profit was revealed.
Former top managers and sales managers of Epsilon Data Management LLC (Epsilon) have been found guilty of selling the data of millions of Americans to participants in mail fraud schemes. Robert Reger (57 years old) and David Little (64 years old) provided scammers with targeted lists of the company's clients for more than 10 years.
Epsilon Data Management LLC is a brokerage and marketing company that specializes in collecting, analyzing, and selling consumer data to businesses for targeted marketing purposes. Epsilon uses advanced algorithms and an extensive database of 100 million U.S. households to predict consumer behavior and identify potential buyers of its customers products and services.
The defendants worked for Epsilon, where they used Epsilon algorithms to predict new lists of consumers who were most likely to respond to phishing emails.
The lists, which include full names, home addresses, email addresses, age, consumer preferences, and purchase history, were sold to fraudsters who used them to target individuals with personalized emails. The emails promised victims large prizes, false astrological predictions of wealth, and other lures that tricked people into sending money to scammers.
The US Department of Justice claims that the convicts shared this data knowing that it would be used for fraud against the elderly and vulnerable segments of the population. In one case, employees sold 100 lists to a single fraudster. The scheme lasted 10 years, resulting in hundreds of thousands of Americans losing large sums of money.
Although Epsilon was not directly involved in the scheme, it settled its criminal liability in 2021 with a deferred prosecution agreement. The resolution required the firm to pay $150 million in fines, of which $122 million was set aside to compensate 200,000 fraud victims.
Earlier, three Epsilon employees and a former vice president of the firm pleaded guilty to participating in the scheme. Their testimony, as well as that of former and current employees, was instrumental in the conviction of Reger and Little, who pleaded not guilty.
Each of the two former executives faces a maximum sentence of 20 years in prison for each count, including conspiracy to commit fraud using electronic means of communication, as well as numerous episodes of mail and electronic fraud. The decision will be issued on September 30 by the U.S. District Court for the District of Colorado.
Former top managers and sales managers of Epsilon Data Management LLC (Epsilon) have been found guilty of selling the data of millions of Americans to participants in mail fraud schemes. Robert Reger (57 years old) and David Little (64 years old) provided scammers with targeted lists of the company's clients for more than 10 years.
Epsilon Data Management LLC is a brokerage and marketing company that specializes in collecting, analyzing, and selling consumer data to businesses for targeted marketing purposes. Epsilon uses advanced algorithms and an extensive database of 100 million U.S. households to predict consumer behavior and identify potential buyers of its customers products and services.
The defendants worked for Epsilon, where they used Epsilon algorithms to predict new lists of consumers who were most likely to respond to phishing emails.
The lists, which include full names, home addresses, email addresses, age, consumer preferences, and purchase history, were sold to fraudsters who used them to target individuals with personalized emails. The emails promised victims large prizes, false astrological predictions of wealth, and other lures that tricked people into sending money to scammers.
The US Department of Justice claims that the convicts shared this data knowing that it would be used for fraud against the elderly and vulnerable segments of the population. In one case, employees sold 100 lists to a single fraudster. The scheme lasted 10 years, resulting in hundreds of thousands of Americans losing large sums of money.
Although Epsilon was not directly involved in the scheme, it settled its criminal liability in 2021 with a deferred prosecution agreement. The resolution required the firm to pay $150 million in fines, of which $122 million was set aside to compensate 200,000 fraud victims.
Earlier, three Epsilon employees and a former vice president of the firm pleaded guilty to participating in the scheme. Their testimony, as well as that of former and current employees, was instrumental in the conviction of Reger and Little, who pleaded not guilty.
Each of the two former executives faces a maximum sentence of 20 years in prison for each count, including conspiracy to commit fraud using electronic means of communication, as well as numerous episodes of mail and electronic fraud. The decision will be issued on September 30 by the U.S. District Court for the District of Colorado.
