A Swedish national, Olof Kyros Gustafsson, has pleaded guilty to six federal criminal charges related to fraud and money laundering. Gustafsson, also known as “El Silencio,” admitted to defrauding investors by marketing products using the likeness of late Colombian drug lord Pablo Escobar. These products included flamethrowers and cellphones that were never delivered.
Gustafsson was extradited from Spain in March after being arrested in December 2023. He served as CEO of Escobar Inc., a Puerto Rico-registered corporation that held rights to Pablo Escobar’s persona. From July 2019 to November 2023, he marketed existing consumer products under the Escobar brand at lower prices than competitors.
Despite receiving payments through various platforms like PayPal and Coinbase, Gustafsson did not deliver the promised products because they did not exist. Instead, he sent samples to technology reviewers and influencers to create demand for these non-existent items.
Customers who paid for these products received promotional materials instead of their purchases. When refund requests were made, Gustafsson used these mailings as proof of delivery to deny refunds.
To conceal his activities, Gustafsson opened bank accounts in multiple countries including the United States and Sweden. He faces up to 20 years in prison for each fraud count and up to 10 years for each money laundering count at his sentencing on December 5.
Gustafsson agreed to pay $1.3 million in restitution and forfeiture of funds obtained through fraud. The investigation involved multiple agencies including IRS Criminal Investigation, FBI, FDIC-Office of Inspector General, Department of Justice’s Office of International Affairs, U.S. Marshals Service, Eurojust, Spanish authorities, and French judicial authorities.
Assistant United States Attorney Joshua O. Mausner is prosecuting the case.
