Pinoys tagged in $44-million US book publishing scam arrested

Two executives of a business process outsourcing (BPO) company in Cebu were nabbed in the United States in December 2024 for allegedly defrauding elderly authors of almost $44 million or about P2.5 billion.

According to the US Attorney's Office in Southern District of California, Innocentrix Philippines founder, president and CEO Michael Cris Traya Sordilla, and Bryan Navales Tarosa, the company's vice president of operations, were arrested in San Diego, California on December 9, 2024.

The Innocentrix Philippines corporate website indicates that Sordilla also established the MCS Group of Companies, which includes MSordilla Builders, MCS Studio, and Serene Oasis Resort. He is also the chairman of national pageant Hiyas ng Pilipinas.

Sordilla and Navales' co-accused, Gemma Traya Austin, who was identified as the organizer and registered agent for PageTurner, Press and Media LLC in Chula Vista, California was also apprehended on December 12.

The three were charged with conspiracy to commit mail and wire fraud, with maximum penalties of 20 years in prison and a $250,000 fine; as well as conspiracy to launder monetary instruments, which also carries maximum penalties of 20 years in prison and a maximum fine of $500,000 or twice the amount laundered.

In a press statement dated January 15, the US Attorney's Office in the Southern District of California said a federal grand jury charged them with defrauding elderly authors across the country of nearly $44 million "by convincing the victims that publishers and filmmakers wanted to turn their books into blockbusters, but only if they paid some fees first."

The accused allegedly used PageTurner between September 2017 and December 2024, to operate a book publishing scam wherein conspirators working for Innocentrix Philippines contacted individual authors through unsolicited calls and emails.

"As part of the scam, the conspirators falsely represented that PageTurner was a book publishing business that worked with literary agents, major motion picture studios, and popular video streaming services, and that PageTurner acted as a liaison between individuals who sought to publish their books or have their books turned into motion pictures or television series," the attorney's office said in a press release.

"As part of the conspiracy, the scammers falsely told victims their works had been selected for acquisition by publishers or movie studios, and fraudulently convinced victims to send PageTurner payments for various services, including pre-payment of taxes and transaction fees, before the victim-author's work could be published or optioned to studios," it added.

The US Federal Bureau of Investigation (FBI) identified more than 800 victims of the scheme who collectively lost around $44 million, based on the statements made by prosecutors in court.

The FBI has also seized the PageTurner website.

GMA Integrated News obtained a copy of the complaint filed by the US government against Austin, which was ordered unsealed by the United States District Court of Southern California on December 12, 2024.

According to the complaint, the victims' money was sent to PageTurner, including to bank accounts controlled by Austin, for the publishing services the victims never received.

Proceeds of the fraud scheme were then allegedly used by Austin to make cash withdrawals and by transferring the money to other accounts controlled by her and/or her co-conspirators "in order to conceal and disguise the nature, location, source, ownership, and control of the proceeds."

Austin, identified as a US citizen, also allegedly wired victim proceeds internationally to her co-conspirators' banks in the Philippines.

"What started with the promise of a Hollywood dream turned into a devastating nightmare for victims," U.S. Attorney Tara McGrath said in a statement.

"Authors should stay vigilant, do their research, and think twice before giving money to anyone promising a blockbuster deal. If you or anyone you know has been targeted in a similar scheme, please report it to the FBI immediately," McGrath added.

DFA assistance

Sought for comment on the matter, Undersecretary Eduardo de Vega from the Philippines' Department of Foreign Affairs (DFA) said the Philippine Consulate General in Los Angeles can offer assistance to the accused Filipinos if needed.

"If they ask our Consulate in LA for help, certainly the Consulate can offer it," de Vega told GMA News Online.

GMA News Online has also reached out to Innocentrix Philippines, and will update this story once it responds. — with a report from Dave Llavanes Jr./ VDV, GMA Integrated News