Swedish entrepreneur Olof Gustafsson pleaded guilty this week to orchestrating one of tech’s most brazen frauds. The secretive former CEO of Escobar Inc. masterminded a global scam that exploited Pablo Escobar’s notorious brand to sell fake luxury smartphones and flamethrowers to hundreds of victims worldwide.
The $1.3 Million Fraud Empire Crumbles
Gustafsson faces up to 20 years per fraud count and 10 years for money laundering when sentenced December 5. He agreed to pay up to $1.3 million in restitution after his arrest in Spain in 2023 and subsequent extradition to the United States. The 32-year-old operated under the alias “El Silencio” while building his fraudulent tech empire through Escobar Inc., a company founded by Roberto Escobar, brother of the infamous Colombian drug lord.
From Gold iPhones to Fake Flamethrowers
The product lineup seemed too good to be true. Escobar Fold series phones were actually rebadged Samsung and Royole devices sold at bargain prices. Gold-plated iPhones promised luxury at discount rates.
A knockoff flamethrower mimicked Elon Musk’s Not-a-Flamethrower design. While tech influencers received doctored samples that generated viral buzz and false legitimacy, regular customers got certificates, books, or absolutely nothing for their money.
The Payment Processor Shell Game
Gustafsson’s most cunning trick involved shipping worthless merchandise to block chargebacks. Customers received certificates or books instead of phones, but tracking numbers showed “delivery” to payment processors like PayPal and Klarna. This tactic stifled refund attempts while millions in losses accumulated across a web of international accounts that complicated law enforcement efforts.
Tech Community Fights Back
Prominent influencer Marques Brownlee exposed the scam in viral videos. He peeled back gold stickers to reveal mundane phones underneath the flashy marketing.
The tech community quickly amplified warnings across forums and social channels. Customer complaints surged as victims worldwide reported devastating losses with no hope of recovering money for undelivered goods.
Exploiting a Notorious Legacy
Escobar Inc. launched in 2015 with Roberto Escobar claiming ownership of Pablo’s intellectual property. The company generated endless publicity through legal threats, controversial stunts, and highly publicized tech ventures that leveraged the drug lord’s infamy for marketing power. This shadowy business model consistently operated at the expense of unsuspecting buyers who fell for the notorious brand’s mystique.
The Escobar Inc. saga demonstrates how technology’s allure becomes dangerous when weaponized through deceptive branding and false promises. As Gustafsson awaits sentencing, the case serves as a stark warning about scrutinizing too-good-to-be-true offers and heeding early warnings from trusted voices in the tech community. This high-profile fraud will reshape perceptions of influencer marketing and consumer vigilance for years to come.
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