A shrine dedicated to the memory of the notorious drug lord Pablo Escobar stands in the Barrio Pablo Escobar in Medellin, Colombia, showcasing various photos, images, and mementos. A Swedish individual known as “El Silencio” is facing allegations of orchestrating a worldwide scam wherein he purportedly sold products branded with the name of Pablo Escobar, such as cellphones, flamethrowers, and cash. However, authorities claim that these items were never delivered as they did not actually exist.
Olaf Kyros Gustafsson, aged 31, has been extradited from Spain to Los Angeles and was formally charged on Friday with a 115-count federal indictment, which includes charges of money laundering, wire fraud, and mail fraud, as per the U.S. Department of Justice. Despite the accusations, Gustafsson has pleaded not guilty to the charges.
The accused is said to have operated under the guise of a business named Escobar Inc., a corporation registered in Puerto Rico that purportedly held rights to the persona and legacy of Pablo Escobar. Gustafsson allegedly utilized these rights to promote a broad range of Escobar-branded merchandise from 2019 to 2023, often duplicating and undercutting the prices of similar goods available for purchase online, according to prosecutors.
Among the fake products advertised were the Escobar Flamethrower, Escobar Fold Phone, Escobar Gold 11 Pro Phone, and Escobar Cash marketed as a form of “physical cryptocurrency.” Despite the promotional efforts, none of these items existed in reality, prosecutors claim. To boost interest in the non-existent Escobar Inc. products, Gustafsson supposedly dispatched Samsung Galaxy Fold phones wrapped in gold foil to tech reviewers online with the intention of enticing potential customers to place orders post-review.
Payments were accepted through various processors like PayPal, Stripe, and Coinbase; however, instead of shipping the purchased goods, Gustafsson allegedly sent customers a “Certificate of Ownership,” a book, or other promotional materials associated with Escobar Inc. In response to refund requests from dissatisfied customers worldwide, prosecutors allege that Gustafsson pointed payment processors to this mailing history to deflect claims.
The accused is said to have utilized bank accounts in the United States, Sweden, and the United Arab Emirates to obscure and camouflage his illicit activities. Gustafsson was apprehended in Marbella in December 2023 during a joint operation conducted by Spanish law enforcement and U.S. Internal Revenue Service agents at his residence in the Spanish Costa del Sol. Despite attempting to avoid extradition by seeking asylum in Spain, Gustafsson’s efforts were unsuccessful.
In a statement to a Swedish newspaper, Gustafsson expressed disappointment with his home country for not safeguarding him from extradition. The indictment against Gustafsson includes charges of money laundering, international money laundering, engaging in monetary transactions derived from unlawful activity
The individual is facing charges including wire fraud and conspiracy to commit money laundering, as stated by the Justice Department. He is currently held in federal custody and his trial is set for May 20. Subscribe to Essential California to receive news, features, and recommendations from the L.A. Times and beyond in your inbox six days a week. This article was first published in the Los Angeles Times.
