Overview

• Olaf Gustafsson pleaded guilty to federal charges of wire fraud, mail fraud and several counts of money laundering for orchestrating the sales scheme.
• He admitted that Escobar Fold 1 and Fold 2 phones were simply rebranded Royole FlexPai and Samsung Galaxy Fold models sold at deep discounts but never delivered.
• Customers who paid between December 2019 and June 2020 received certificates of ownership or promotional materials to fabricate shipping records and block refund claims.
• Prosecutors say Gustafsson laundered more than $307,000 of customer funds through the operation by misrepresenting delivery proof to payment processors.
• He agreed to repay up to $1.3 million in restitution to defrauded buyers and faces up to 20 years in prison when sentenced on December 5.