Filipino CEO Pleads Guilty to P2.6-Billion Scam That Defrauded Over 800 Authors in the U.S.

Last May 7, the United States Attorney’s Office (USAO) reported that a Filipino Chief Executive Officer (CEO) pleaded guilty to a publishing scam. He is the first of four defendants to admit his role in the scheme, confirming that he took part in victimizing over 800 authors—most of which are seniors.

Michael Cris Traya Sordilla, also known as Mike, was the chairman of the local pageant Hiyas ng Pilipinas. However, his case focuses on his role as the founder and CEO of Innocentrix Philippines. Under the guise of the business process outsourcing or BPO company, Mike and his co-conspirators operated “a fraudulent network of scammers in the Philippines to enrich themselves by selling false hopes of tremendous professional success to writers in the United States.” The scam took place from 2017 to 2024.

According to his plea agreement, Mike’s role was to manage Innocentrix Philippines as a call center, where sales representatives posed as literary agents to reach out to Western authors. “As part of the conspiracy,” wrote the USAO, “the scammers falsely told victims their works had been selected for acquisition by publishers or movie studios, and fraudulently convinced victims to send 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.”

As mentioned, Mike had three co-conspirators, and one of them was his long-term partner, Bryan Navales Tarosa.

To support the narrative, the group of four registered fictitious business entities in the USA, namely PageTurner, Metro Films, and WP Lighthouse. The false representations included “the location of operations, their contacts and communications with literary agents, major traditional publishers, motion picture studios, and popular video streaming services.”

Mike also directed his co-conspirators to open and manage bank accounts under some of the phony business entities at various financial institutions. The USAO explained, “After victim funds were received in bank accounts established on behalf of PageTurner and WP Lighthouse, in order to conceal the location and control of proceeds of the book publishing scam, Sordilla directed co-conspirators to withdraw and transfer victim funds to domestic and international bank accounts in the Philippines controlled by Sordilla and co-conspirators.”

At least $42 million (approximately P2.6 billion) was laundered, with Mike receiving $2,725,951 (approximately P168 million). As part of the guilty plea, Mike must forfeit the amount he received. He will also be “subject to an order of restitution to the victims of the offense in the amount of at least $48,719,156.38 (approximately P3 billion).

US Attorney Adam Gordon stated that “The defendants didn’t just steal money—they stole dreams, leaving victims with empty promises and devastating losses.” He also emphasized that legitimate publishers and filmmakers do not demand upfront fees.

The three other defendants also face charges of conspiracy to commit money laundering and mail and wire fraud. Each charge carries a maximum penalty of 20 years imprisonment under U.S. federal law.