DENVER (AP) - One of the world’s largest marketing companies has agreed to pay $150 million for facilitating fraud schemes targeting older adults.
Epsilon Data Management LLC entered into the settlement with the Department of Justice and the U.S. attorney’s office in Colorado, The Denver Post reported Wednesday.
U.S. Attorney Jason Dunn in Colorado said in a statement that the settlement is tied to a charge of conspiracy to commit mail and wire fraud.
Epsilon Data Management did not immediately respond to a request for comment. The company is headquartered in Irving, Texas, but its principal sales office is in Westminster, Colorado.
The company acknowledged that its employees knowingly sold customer lists to clients engaged in fraud from 2008 to 2017, which included the data of more than 30 million consumers.
Epsilon said it sold consumer data to mass-mailing fraud schemes that sent fake sweepstakes and astrology solicitations.
The offers largely targeted older adults and vulnerable people with claims they had won large prizes or psychic services they could obtain by paying fees. Victims who paid received nothing of value, authorities said.
About $127 million in the settlement is expected to compensate victims of the schemes.
Epsilon also agreed to “significant compliance measures” to safeguard consumer data and prevent its sale to people engaged in fraudulent or deceptive marketing.
The marketing company will be required to offer a way consumers can request their information not be sold.
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