The former CEOs of Bitwise Industries, accused of wire fraud and conspiracy in a $115 million scam that toppled the company, entered guilty pleas on Wednesday morning.

Federal prosecutors said Jake Soberal and Irma Olguin Jr. altered financial documents, lied, and cheated investors to keep the company afloat. They told its board of directors that the company’s financial health was stronger than it was.

Both walked past reporters outside the federal courthouse in Fresno without commenting on their pleas.

However, attorneys Daniel Olmos and Eric H. MacMichael, issued a joint statement on their behalf:

“It has been a priority for Jake and Irma to take full responsibility for their wrongdoing since the moment we met them over a year ago.

“These are two people who made serious mistakes but did not do so out of greed or any desire to enrich themselves.  They care deeply about this community and desperately wanted to see Bitwise succeed.

“The important message for today is that Jake and Irma are profoundly sorry for the hurt they’ve caused.”

Olmos is Olguin’s attorney and MacMichael represents Soberal.

#Bitwise case: Irma Olguin Jr. and Jake Soberal leave without comment. They pleaded guilty to wire fraud and conspiracy in $115M scam. Sentencing Nov. 6. pic.twitter.com/4pih5bghaZ

— David Taub (@TaubGVWire) July 17, 2024

Things unraveled in May 2023, when the company failed to pay property taxes, and had payroll issues. Within weeks, Bitwise laid off a reported 900 employees; the board fired Soberal, 38, and Olguin, 43; and by June, the company filed for bankruptcy.

The plea avoids a trial in which the defendants could have received 20 years each if found guilty. The pair initially pleaded not guilty when criminally charged last November. Court documents hinted a plea deal was in the offing for months.

In exchange for the guilty plea — to one count of wire fraud, and one wire fraud conspiracy count — the federal government will not pursue more charges and will recommend the lowest sentencing. Court documents indicate that could be five years. As part of the plea deal, the pair agreed to make $115 million in restitution.

Soberal, an attorney, who was admitted to the State Bar, in 2011, had his license suspended in July 2023.

Sentencing takes place on Nov. 6 following a probation report. The defendants will remain free under the same supervision conditions set forth last November.

Related Story: Bitwise Plea Deals Are In. Will Soberal, Olguin Serve Jail Time?

In the Courtroom

Soberal and Olguin had several family members and supporters inside Judge Dale Drozd’s seventh floor courtroom. Drozd ruled that not only would recording not be allowed in the courtroom, as is usual for a federal case, but it would not be allowed in any part of the building as well.

Soberal wore a dark blue suit. Olguin, with fuscia-colored hair and a white suit jacket with gray pants, faced Drozd accompanied by their respective attorneys.

The clerk swore in the defendants. Prosecutor Joseph Barton asked the judge if the defendants needed to be officially arraigned. Drozd said that was not necessary.

Drozd advised Soberal and Olguin of their rights and each answered “yes” to whether they would waive them. Drozd asked their age, occupation, mental health, drug use, and if they understood what was happening today.

Olguin said she has been freelancing, and Soberal said he has been consulting with local nonprofits. They said they are not undergoing any mental or drug treatments.

Continuing to answer, “yes, your honor,” Soberal and Olguin said they are satisfied with their attorneys, reviewed the plea deals, and understood the consequences of pleading guilty.

Both did answer “no, your honor” when asked if they face any other current criminal case.

“What is your plea to the charge?” Drozd asked, continuing to read the full language of the charge.

“Guilty,” Olguin answered.

“Guilty,” Soberal answered.

Drozd asked the same question in the same manner for the second charge. Olguin and Soberal offered the same “guilty” response.

“Guilty, your honor,” Olguin answered.

“Guilty, your honor,” Soberal answered.

Drozd accepted the pleas.

Former Bitwise board member Mitchell Kapor, through a spokesperson, declined to comment. Other former members Ollen Douglass, Joseph Proietti, and Paula Pretlow did not respond to GV Wire messages requesting comment.

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