United States v. Epsilon Data Management, LLC
Enforcement actionU.S. District Court, District of Colorado · Deferred Prosecution Agreement approved Jan 27, 2021 · DOJ Civil Division + U.S. Attorney D. Colo.
- Settlement total
$150,000,000
- Victim compensation
$127.5M
- Charge
Conspiracy to commit mail and wire fraud
- Conduct period
July 2008 - July 2017
- Unit at issue
Direct-to-Consumer Unit, Westminster, CO
- Court approval
Jan 27, 2021
Per the DOJ press release, Epsilon's DTC Unit "knowingly sold modeled lists of consumers to clients engaged in fraud" - specifically, mass-mail clients who sent false sweepstakes and astrology solicitations claiming the recipient had won a large prize or qualified for an individualized psychic reading and could obtain it for a fee. The Epsilon employees knew the solicitations were fraudulent and that the lists they sold (which scored each household's likelihood of responding to prior fraudulent mailers) were used to maximize the schemes' reach. Many victims paid the fees and received nothing. The schemes "disproportionately affected the elderly and other vulnerable individuals." The settlement creates a $127.5M victim compensation fund and requires Epsilon to implement a compliance program; charges will be dismissed if Epsilon complies through the DPA term.
















