Bitwise co-founders face federal charges alleging $100-million fraud scheme

Canyon Crest Guide Newspaper Ads Canyon Crest CA

Federal authorities have charged the co-founders of Fresno startup Bitwise Industries with fraud months after the company laid off all of its employees and shut down without explanation.

Irma Olguin Jr. and Jake Soberal surrendered to authorities Thursday after being charged in a federal complaint with conspiring to commit wire fraud and taking more than $100 million, U.S. Atty. for the Eastern District of California Phillip A. Talbert announced in a news release.

“The defendants could have chosen simply to admit the failure of Bitwise’s business model. Instead, they used lie after lie to pull over $100 million into a dying venture through fraud,” Talbert said.

Newspaper Ads Canyon Crest CACanyon Crest Guide Newspaper Ad

The two were scheduled to appear in federal court in Fresno on Thursday.

For years, Bitwise had been the tech darling of the Central Valley, promising leaders to transform the region’s economy, revitalize downtowns and make workers competitive with digital skills.

It all collapsed on Memorial Day, when the company furloughed all 900 of its employees and told them their jobs were permanently eliminated two weeks later. Bitwise filed for bankruptcy June 28 and has been hit with lawsuits since from former board members, lenders and ex-employees.

The federal complaint alleges Olguin and Soberal began lying to board members, investors and lenders no later than January 2022 to obtain more funding. They allegedly fabricated information in board presentations and investor materials and forged various records, using the money to meet Bitwise Industries’ payroll, renovate office spaces and repay prior debts.

Olguin and Soberal could each face a maximum of 20 years in prison and a $250,000 fine.

Bitwise began as a coding boot camp in Fresno in 2013, acquiring buildings over the years to host local businesses and opening co-working spaces in California, Texas and Ohio. It raised a $27-million Series A round of funding in 2019 and Series B funding of $50 million in 2021.

Also Thursday, the U.S. Securities and Exchange Commission announced charges against the two former co-CEOs on allegations of falsifying records and misleading investors to raise $70 million.

“We allege that Soberal and Olguin resorted to blatant fraud, including the creation of fake financial documents, to deceive investors and raise money,” Monique C. Winkler, regional director of the SEC’s San Francisco office, said in a news release.

Winkler said the two allegedly sent a screenshot of a company bank account to investors that showed a cash balance of $23.4 million, when it only had $325,100.

“That’s not a bank error — that’s fraud, and the SEC is taking action to hold the defendants accountable,” Winkler said.

Source link

Reach Out

Don’t hesitate to reach out to us to discuss your specific needs. Our team is ready and eager to provide you with tailored solutions that align with your firm’s goals and enhance your digital marketing efforts. We look forward to helping you grow your law practice online.

Our Services:
Blog Post Writing
We do well-researched, timely, and engaging blog posts that resonate with your clientele, positioning you as a thought leader in your domain.

Content Writing
Beyond articles and content for blogs, we delve into comprehensive content pieces like eBooks, and case studies, tailored to showcase your expertise.
Website Content Writing: First impressions matter. Our content ensures your website reflects the professionalism, dedication, and expertise you bring to the table.

Social Media Management
In today’s interconnected world, your online presence extends to social platforms. We help you navigate this terrain, ensuring your voice is consistently represented and heard.

WordPress Website Maintenance
Your digital office should be as polished and functional as your physical one. We ensure your WordPress site remains updated, secure, and user-friendly.
For more information, ad placements in our attorney blog network, article requests, social media management, or listings on our top 10 attorney sites, reach out to us at

Warm regards,

Canyon Crest Guide Newspaper

California Estate Planning
Canyon Crest Guide Newspaper Ads Canyon Crest CA

Whether you’re a startup or an established brand, business directories offer an affordable, yet powerful tool to elevate your brand recognition and reach. Sign up, stand out, and let your business soar to new heights, sign up to one of our directory websites:

Canyon Crest Directory

Riverside Ca Business Directory

The Riverside Coupon Directory

Content Writing Service

Newspaper Ads Canyon Crest CA

Like us on Facebook Here

Canyon Crest Guide
5225 Canyon Crest Drive Ste.71 #854 Riverside CA 92507
Tony Ramos 951-235-3518
For great backlinks to your website sign up to one of our directory websites:
Canyon Crest Directory
Riverside Ca Business Directory
The Riverside Coupon Directory

Source link

You May Also Like

About the Author: adirectorylist

Leave a Reply

Your email address will not be published. Required fields are marked *

Home Privacy Policy Terms Of Use Anti Spam Policy Contact Us Affiliate Disclosure DMCA Earnings Disclaimer