Co-founders behind Bitwise collapse in Fresno report to prison to serve fraud sentences
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On Tuesday, the two defendants in one of Fresno’s biggest business scandals are expected to report to federal prison to serve their sentences for wire fraud and conspiring to commit wire fraud.
Former co-CEOs Jake Soberal, 38, and Irma Olguin Jr., 43, pleaded guilty to bilking investors — from multinational investment banks to Valley farmers — out of nearly $115 million to try and keep their failing company, Bitwise Industries, afloat.
During their sentencing hearing Dec. 17, Soberal and Olguin apologized for their deceit and disappointing the community that had held them up as a Fresno success story.
The judge gave Soberal an 11-year sentence while Olguin received nine years.
Founded a decade ago by Soberal and Olguin, Bitwise was championed for its efforts to provide technology training for underrepresented people, offering technology services for local businesses and leasing space in its buildings for entrepreneurs and start-ups.
When Bitwise collapsed in May 2023 it had 900 employees in several states. All were furloughed and eventually laid off.
As part of their sentencing, the judge ordered restitution of $114.6 million.
Who is owed restitution from Bitwise?
Court documents revealed a list of 15 investors that are owed money.
Among them: investment firm Grounded Capital in San Francisco is owed $35 million, Goldman Sachs in New York is owed $18 million and Citi Bank in New York is owed $10 million.
Local companies on the list are Agri Capital Inc, of Chowchilla, which is owed $1 million, and Valley Wide Beverage in Fresno, which is owed $3 million.
Also in line for restitution are former Bitwise executives Landon Brokaw, chief corporate development officer, and Channelle Charest, executive director of growth. Each is owed $100,000.
Where are Bitwise CEOs serving sentences?
Although Soberal and Olguin were sentenced in December, the judge allowed the pair 90 days to prepare for prison. They were due to report by noon March 18.
Soberal will serve his sentence at the federal prison in Atwater and Olguin is going to the federal prison in Victorville.
This story was originally published March 16, 2025 at 5:30 AM with the headline "Co-founders behind Bitwise collapse in Fresno report to prison to serve fraud sentences."
