Former Bitwise CEOs change plea to guilty: all you need to know

FRESNO, Calif. ( KSEE/KGPE ) – The former co-CEOs of the now defunct Bitwise Industries, Jake Soberal, and Irma Olguin Jr., changed their pleas to guilty on federal felony charges of wire fraud and conspiracy to commit wire fraud at the Robert E. Coyle federal courthouse in downtown Fresno Wednesday morning.

The duo initially pleaded not guilty at their arraignment in November 2023, but the plea change was made after the duo agreed to a guilty plea deal with federal prosecutors on July 2.

After the plea, Olguin and Soberal were able to walk out of the courthouse themselves, on supervised release, but continued to not answer questions from the media before getting into a black sedan and driving off.

“Most of us knew. So, it was good for them that they acknowledged that. And I’m just hoping during sentencing that they are not above the law,” said Jenn Guerra, a former Bitwise employee, in reaction to the plea change.

According to the court, the maximum sentence handed out for each sentence is 20 years in prison, a $250,000 fine, and three years of supervised release.

However, according to the terms of the plea deal, the government will only recommend the “low-end” sentence, as the former CEOs will be ordered to pay restitution to victims, a maximum amount of $115 million.

It’s unclear how, or if, they would be able to pay that sum.

Soberal and Olguin will also be required to forfeit all assets to cover at least some of the restitution costs. Roger Bonakdar, the lawyer representing former workers in a class action lawsuit against the bankrupt company, says the money isn’t for his clients.

“They’re talking about the money that investors lost. They aren’t talking about the 401(k) payments that weren’t made. They’re not talking about bounced paychecks. They’re not talking about late fees from banks,” said Bonakdar.

One employee says she just hopes to get something after she and so many others were left struggling after they were furloughed and later laid off from Bitwise.

“I would be happy with my last paycheck because it set me back for this whole year. I’ve been set back our money and my kids and I are struggling and, you know, I’m just really trying hard to keep a roof over our heads,” said Laura Splotch, a former employee.

Olguin and Soberal will be sentenced on Nov. 6 at 8:30 a.m.

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