Former executives of Epsilon Data Management LLC, Robert Reger and David Lytle, were found guilty of federal criminal charges related to mass-mailing fraud schemes targeting millions of U.S. consumers, announced the Justice Department today.
After a two-week trial, the jury convicted Reger, 57, of Boulder, Colorado, and Lytle, 64, of Leawood, Kansas, of conspiracy to commit mail and wire fraud, along with multiple counts of substantive mail and wire fraud.
Evidence presented during the trial revealed that the defendants played pivotal roles in a scheme that involved selling targeted lists of consumers and their addresses to perpetrators of fraud schemes for over a decade.
Operating within data broker Epsilon, the defendants utilized transactional data collected from marketing clients to identify potential “responsive buyers” through computer algorithms and a database of 100 million U.S. households.
The jury determined that the defendants were aware that their actions were providing data to fraudsters.
The defendants’ involvement included working with numerous clients who sent fraudulent mailings promising large prizes or falsely personalized astrological mailings promising wealth.
These activities targeted elderly and vulnerable consumers, with evidence showing that nearly 100 lists were sold to a single fraudster client.
At trial, elderly victims and their families testified about receiving scam letters falsely promising cash prizes, with evidence indicating that each victim was targeted by members of the conspiracy.
Former and current Epsilon employees, as well as witnesses who previously pleaded guilty to conspiracy to commit mail fraud, also provided testimony.
Both Reger and Lytle face a maximum penalty of 20 years in prison for each count. A sentencing hearing is scheduled for September 30.
The investigation was conducted by the U.S. Postal Inspection Service’s Transnational Elder Fraud Strike Force.
The case was prosecuted by attorneys from the Justice Department’s Consumer Protection Branch and the U.S. Attorney’s Office for the District of Colorado.
Victims of financial fraud aged 60 or older are encouraged to contact the National Elder Fraud Hotline at 1-833-FRAUD-11 for personalized support and assistance with reporting.
Reporting financial losses due to fraud promptly can aid authorities in recovering losses and identifying perpetrators.
