Jake Soberal and Irma Olguin Jr., founders of the bankrupt Bitwise Industries, have reached a settlement with the U.S. Department of Justice after they allegedly lied to investors to collect $115 million in investments and loans, according to court documents.
Attorneys representing Soberal and Olguin filed a motion in federal court Tuesday seeking to set aside the upcoming preliminary hearing and instead set a date for a change of plea.
“The parties have entered into a plea agreement to resolve the matter and will file the agreements with the court shortly,” the court document reads.
As of Wednesday morning, the plea agreements had not yet been filed with the court.
The high-profile Fresno company that once billed itself as a hub for technology education and innovation went bankrupt on May 29, 2023, after filing for bankruptcy, killing about 900 people.
Federal prosecutors have charged Soberal and Olguin with “altering and fabricating financial information” in order to mislead and deceive investors and lenders into making investments and loans to the company, according to newly filed court documents.
“As a result of Soberal and Olguin’s false and fraudulent statements, Bitwise received approximately $115 million in investments and loans between January 2022 and May 2023. This included $18 million from a New York-based financial institution on or about September 1, 2022,” court documents show.
Soberal and Olguin are each charged with one count of conspiracy to commit wire fraud and wire fraud. They have pleaded not guilty.
The couple is scheduled to appear in U.S. District Court on July 17 to change their pleas to guilty, with a sentencing hearing scheduled for about 10 weeks later.
Although Soberal and Olguin face up to 20 years in prison for their crimes, legal expert Tony Capozzi suspects that is unlikely.
Capozzi, a veteran Fresno attorney with extensive experience in federal court, estimates the defendants could face about five years in prison, based on their lack of criminal history, their cooperation with investigators and their willingness to accept responsibility.
“I just don’t think their punishment will be that severe,” said Capozzi, who is not involved in the case.
Also potentially in the defendants’ favor is if they involve someone else in their fraud scheme. Soberal and Olguin have said in previous court documents that they were the only ones responsible for the deception.
“If a defendant can implicate someone else in the fraud or conspiracy, he can do so if it means his sentence can be reduced,” Capozzi said.
Jenn Guerra, a former Bitwise employee, is expected to attend the change of pleas hearing on July 17.
“If it is proven that they falsified documents and lied to us, then they should be held accountable just like everyone else,” she said. “They are not above the law.”
