- Escobar Fold phone creator Olof Gustafsson has pleaded guilty to multiple counts of fraud and money laundering.
- Customers were sent certificates or merch instead of the foldables, flamethrowers, or gold iPhones they paid for, making refunds harder to claim.
- Gustafsson could face many years in prison and will pay up to $1.3 million in restitution.
It looked like an obvious scam at the time, and of course it was. The man behind the gold-plated Escobar Fold phones and other eyebrow-raising tech has pleaded guilty to multiple fraud charges before a federal judge in Los Angeles, and faces serious prison time.
As reported by TechSpot, Olof Gustafsson, the Swedish CEO of Escobar Inc., pleaded guilty to six counts of fraud and money laundering, including wire fraud, mail fraud, and conspiracy to commit both. He now faces up to 20 years in federal prison for each fraud charge, and up to 10 years for each laundering count, with sentencing set for December 5.