The founders of a failed California technology company were indicted by federal authorities on Thursday for their role in a $100 million fraud scheme in which they financed lavish lifestyles and high salaries.
Irma Olguin, Jr. and Jake Soberal, who heads Fresno-based startup Bitwise Industries, surrendered to authorities on charges they conspired to commit wire fraud and take millions of dollars from various businesses and individuals, the US attorney for the Eastern District of California announced.
The pair allegedly created a web of lies and fabricated documents to create the illusion that the private technology company succeeded.
They are accused of falsifying bank statements, lying to investors, providing false financial information to their board of directors, falsifying documents, and using buildings that Bitwise no longer owns as collateral for loans, “all while lining their own pockets,” US Attorney Phillip Talbert said. in a press release.
Olguin and Soberal allegedly agreed to begin their string of elaborate lies in January 2022, 16 months before Bitwise suddenly collapsed – despite the company’s latest report being worth over $500,000,000 and financially sound.
The two allegedly falsified its financial records to obtain investments, loans and other financing, which they included in Bitwise’s payroll and fringe benefits, furnished the company’s office space and paid back debts owed to previous lenders.
Irma Olguin, Jr. and Jake Soberal allegedly agreed to fake the success of Bitwise Industries to get investor funding. SFGATE
They were also concerned about meeting their own $600,000 annual salary, investigators said.
When the scheme was finally revealed in May 2023, the company’s 900 workers and apprentices were immediately laid off and subsequently laid off.
Olguin and Soberal were fired by the company’s board of directors and Bitwise filed for bankruptcy protection the following month.
Bitwise Industries suddenly collapsed in May 2023, leaving 900 workers out of a job.SFGATE
“This white-collar crime often stems from greed and mismanagement and leaves hard-working tax-paying citizens in their wake,” Mark Silva, Acting IRS Criminal Investigation Special Agent in Charge of the Oakland Field Office, said in a statement. .
The couple has admitted to running the scheme, but pleaded not guilty in court in a Fresno court on Thursday.
They claim they are doing so in a genuine effort to revive a dying business.
“Jake and Irma have taken full responsibility for the mistakes they made while trying to preserve Bitwise. Their sincere desire not to see Bitwise fail caused them to make many serious and consequential errors in judgment,” lawyers for Soberal and Olguin said in a statement.
Both have agreed to a bar barring them from serving as officers or directors of public companies, as well as other penalties, the SEC said.
If convicted, both face a maximum sentence of 20 years in prison and a $250,000 fine.
By Postal Wire
Categories: Trending
Source: thtrangdai.edu.vn/en/
