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Analytic Acquisitions Aids Investigation into $115 Million Bitwise Fraud

December 19, 2024 3:00 pm

The recent sentencing of Jake Soberal and Irma Olguin Jr., founders of Bitwise Industries, marks the culmination of a high-profile investigation into one of the largest corporate fraud cases to emerge from California’s Central Valley. Analytic Acquisitions is proud to have contributed its expertise to this critical investigation, supporting federal agencies in uncovering the truth behind a scheme that defrauded investors of approximately $115 million.

Bitwise Industries was initially heralded as a groundbreaking startup, lauded for its mission to create opportunities for underserved communities and revitalize urban areas through technology. However, behind the façade of success, Soberal and Olguin Jr. fabricated financial statements, forged documents, and misrepresented their company’s financial health to investors and lenders. Their actions not only led to financial losses but also disrupted the lives of nearly 1,000 employees who abruptly lost their jobs when the company collapsed in May 2023.

The fraud’s complexity required a meticulous and collaborative investigative approach. Working alongside the FBI, IRS Criminal Investigation, and other law enforcement agencies, Analytic Acquisitions leveraged its expertise in forensic analysis and compliance review to assist in uncovering key evidence. From identifying discrepancies in financial records to analyzing forged audit reports, our team played a vital role in piecing together the timeline of deceit.

Insights from the Investigation

  • The case against Bitwise revealed startling details, including:
  • Falsified financial reports that grossly inflated revenue and cash balances.
  • Misrepresentation of investments and property ownership to secure additional funding.
  • Altered audit documents to deceive investors about the company’s profitability.

These actions, coupled with the defendants’ decision to hire unqualified individuals to compartmentalize sensitive information, exemplified the lengths to which they went to sustain their fraudulent scheme.

Justice and Its Broader Implications
Jake Soberal was sentenced to 11 years in prison, while Irma Olguin Jr. received a 9-year sentence. The penalties reflect the severity of their crimes and the lasting harm caused to investors, employees, and the broader community.

“This case underscores the devastating impact of corporate fraud, not just on financial markets but on real people’s lives,” said an Analytic Acquisitions representative. “We are honored to have played a role in helping bring these individuals to justice and supporting efforts to safeguard our economic systems from similar schemes.”

Commitment to Excellence in Investigative Support
Analytic Acquisitions remains steadfast in its dedication to supporting federal investigations and ensuring accountability in cases of fraud and misconduct. By combining strategic solutions with operational excellence, we empower our partners to navigate complex challenges and uphold justice.


If you’d like to learn more about how Analytic Acquisitions supports federal agencies in their missions, visit our services page.