Cebuano BPO exec implicated in $44-M publishing scam denies charges, blames rogue agents

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THE legal counsel of Cebu-based business process outsourcing (BPO) executive Mike Sordilla has denied all allegations linking him to a $44-million publishing scam that allegedly defrauded hundreds of elderly writers in the United States.

In a press conference on Friday, April 11, lawyer Oliver Baclay, spokesperson for Innocentrix CEO Michael Cris Sordilla, maintained his client’s innocence and refuted claims of any criminal liability filed against him in relation to the operations of a purported fraudulent publishing company.

Sordilla, along with fellow Cebuano Bryan Tarosa and California-based Gemma Traya Austin, is facing federal charges of conspiracy to commit mail and wire fraud and conspiracy to commit money laundering.

They were arrested in the U.S. in December 2024 and are currently detained at the Metropolitan Correctional Center in San Diego.

The U.S. Department of Justice (DOJ) earlier alleged that the trio orchestrated a scheme that targeted elderly authors by promising to turn their books into Hollywood blockbusters in exchange for thousands of dollars in upfront fees.

Over 800 victims reportedly lost a total of $44 million to the scam, which was carried out between September 2017 and December 2024.

But Baclay said the accusations were based on the actions of two rogue sales agents who operated independently while the company was on a work-from-home arrangement during the pandemic.

“Mike denies any criminal liability. All the accusations stated on the DOJ website and echoed by various news outlets stemmed from the unauthorized actions of certain sales agents. These individuals either acted beyond their authority or accessed the company’s IT infrastructure without proper authorization,” Baclay said.

He added that these actions were “contrary to the policies of Innocentrix.”

Baclay also responded to U.S. investigators’ suspicion over the seizure of multiple gadgets from Sordilla during his arrest, saying the number of phones should not be viewed as evidence of wrongdoing.

“Those gadgets are not meant to be used for scams. If Mike really intended to scam, why would he bring those phones to the U.S. when he could have done it from the Philippines? There might be socio-cultural misunderstandings, because owning multiple phones may not be as common or acceptable in the U.S.,” he said.

Recalling the December 9 arrest in San Diego, Baclay described it as abrupt and aggressive.

“They had just finished lunch when two men entered the restaurant and asked loudly, ‘Mike Sordilla?’ Mike, having nothing to hide, said yes. That’s when they grabbed him, handcuffed him, and dragged him out without explaining anything,” he said.

Baclay also raised concerns about the bail proceedings, claiming that Sordilla was denied release due to the court’s belief that he held influence in the Philippines.

“In the bail hearing, one juror allegedly said, ‘We cannot allow this man to go because he is very powerful in the Philippines,’” Baclay said.

Sordilla, 43, is the founder of Hiyas Pilipinas and the chief executive officer of Innocentrix Philippines, a Cebu-based BPO firm. On its official website, Innocentrix describes itself as a service provider for publishing and marketing firms abroad.

The DOJ identified PageTurner, Press and Media LLC—a company reportedly operated by Gemma Traya Austin—as the face of the scheme. Sordilla and Tarosa were said to have supported the operation from the Philippines by recruiting authors and convincing them to pay hefty fees for services such as tax clearances, production, and marketing deals with film companies.

The DOJ emphasized that the charges remain accusations, and all individuals involved are presumed innocent unless proven guilty.

“This scheme exploited vulnerable individuals and misrepresented the publishing industry to deceive innocent authors. The level of deception and financial loss is staggering,” said FBI San Diego Special Agent in Charge Stacey Moy in an earlier statement.

The FBI and the United States Postal Inspection Service are leading the investigation. Authorities have also shut down PageTurner's official website as part of their probe. Potential victims of the scheme are urged to contact the FBI via [email protected].(TGP)