DENVER, CO – In a shocking verdict that exposes the dark underbelly of the data brokering industry, two former Epsilon Data Management LLC executives have been found guilty of selling millions of Americans’ personal data to perpetrators of mail fraud schemes.
Robert Reger, 57, of Boulder, Colorado, and David Lytle, 64, of Leawood, Kansas, were convicted of conspiracy to commit mail and wire fraud and numerous counts of substantive mail and wire fraud. The jury’s verdict marks a significant victory for the Justice Department and its law enforcement partners, who have been working tirelessly to bring these corporate executives to justice.
According to evidence presented at the two-week trial, Reger and Lytle knowingly sold targeted lists of consumers and their addresses to perpetrators of fraud schemes involving the sending of false and deceptive mail to consumers over the course of 10 years. The defendants worked at Epsilon, a data broker that used transactional data collected from marketing clients to predict new “responsive buyers” using computer algorithms and a database of 100 million U.S. households.
As part of the scheme, the conspirators sold the names and addresses of millions of U.S. consumers to perpetrators of schemes engaged in fraud, knowing that their fraudster clients were targeting elderly and vulnerable people. Evidence at trial showed that Reger and Lytle sold nearly 100 lists to just one fraudster client, and that they had many other fraudster clients with scam letters. At trial, elderly victims and their adult children testified about the scam letters they received falsely promising cash prizes.
“This case serves as a warning that the Justice Department will hold corporate executives accountable for fraudulent use of consumer data,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will investigate and prosecute individuals who use sophisticated technology to defraud consumers.”
The convictions of Reger and Lytle send a clear message to the data brokering industry that exploiting vulnerable consumers will not be tolerated. The Justice Department and its law enforcement partners will continue to work tirelessly to ensure justice is served and to prevent these crimes from happening in the future.
Robert Reger, who worked at Epsilon from 2005 to 2017, was convicted of conspiracy to commit mail and wire fraud, as well as numerous counts of substantive mail and wire fraud. He is facing a maximum sentence of 20 years in prison and a fine of up to $250,000. David Lytle, who worked at Epsilon from 2003 to 2014, was also found guilty of conspiracy to commit mail and wire fraud, as well as numerous counts of substantive mail and wire fraud. He is facing a maximum sentence of 20 years in prison and a fine of up to $250,000.
The convictions of Reger and Lytle are a significant blow to the data brokering industry, which has long been criticized for its lack of transparency and accountability. The Justice Department’s investigation into Epsilon’s data brokering practices is ongoing, and it is clear that the department will not hesitate to take action against companies and executives who engage in fraudulent activities.
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Key Facts
- State: Colorado
- Agency: DOJ USAO
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: Official Source ↗
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