Swedish CEO Olof Gustafsson sentenced to 4 years for Pablo Escobar fraud

Olof Kyros Gustafsson, a 32‑year‑old Swedish businessman and chief executive of the Puerto Rico‑registered firm Escobar Inc., was sentenced by a U.S. federal court to 48 months in prison. He was also ordered to pay a $25,000 fine and more than $1.3 million in restitution after pleading guilty to conspiracy, wire and mail fraud, and money‑laundering charges.

From July 2019 through November 2023, Gustafsson marketed a range of products – including a so‑called “Escobar Flamethrower,” gold‑plated foldable smartphones, and a cryptocurrency dubbed “Escobar Cash” – under the name of the late Colombian drug lord Pablo Escobar. The items were never produced or delivered; buyers received only promotional certificates or low‑value items. Proceeds were moved through bank accounts in the United States, Sweden and the United Arab Emirates.

Gustafsson was arrested at his home in Marbella, Spain, in December 2023, fought extradition, and was transferred to the United States in March 2025. The sentencing marks the conclusion of a multi‑year investigation into an international fraud scheme that defrauded consumers of millions of dollars.