Bill Gates’ Daughter Caught in Fraud Scheme, Facing Up to 20 Years in Prison
by Frank Bergman
Bill and Melinda Gates’s daughter Phoebe has been caught in a major fraud scandal after internal company messages revealed that her startup was knowingly using a deceptive affiliate marketing tactic to claim commissions on sales it did not generate.
The scheme, known as “cookie stuffing,” has previously resulted in federal fraud prosecutions and prison sentences.
Corporate attorney Ariel Givner warns that the conduct is “typically treated as federal wire fraud in US courts.”
Givner confirms that Gates could face a “max penalty of up to 20 years’ prison + fines/restitution.”
The revelations are especially damaging because Gates has repeatedly tried to distance herself from her billionaire father’s wealth and influence, insisting that her company would succeed with “no ties to my privilege or my last name.”
That claim is now colliding with internal records showing that Gates and fellow co-founder Sophia Kianni were aware of the controversial practice for months.
Internal Slack Messages Expose What Was Happening
Gates, 23, co-founded Phia, a browser extension marketed as a “personal shopping assistant” designed to help users find better deals on fashion products.
Phia makes money when users buy products through affiliate links and the company receives a commission from retailers.
But Bloomberg found that Phia was claiming commissions even when its platform had not actually driven the sale.
The extension reportedly opened a background tab and automatically dropped its own tracking cookie when users made purchases, overriding legitimate referrals and allowing Phia to take credit for sales it did not generate.
Independent researcher and affiliate marketing expert Ben Edelman said the practice violated the most basic rule of affiliate marketing.
“The most fundamental requirement in affiliate marketing is that commission is only paid if a user clicks,” Edelman said.
“The rules don’t allow fake clicks, simulated clicks, imaginary clicks, or hypothetical clicks.
“Only a real click will do.”
The most damaging evidence came from Phia’s own internal Slack messages.