FRESNO, Calif. - The co-CEOs and founders of Bitwise, a defunct tech company, surrendered themselves on Thursday after a federal investigation uncovered a $100 million fraud scheme. Irma Olguin Jr. and Jake Soberal face charges of conspiring to commit wire fraud and taking funds from various businesses and individuals.

According to the complaint filed this week, Olguin and Soberal are accused of deceiving board members, investors, lenders, and others about Bitwise's finances to secure investments, loans, and other forms of funding. The alleged fraudulent activities took place no later than January 2022, earlier than previously known instances of fraud.

U.S. Attorney Talbert stated in a news release, "The defendants could have chosen simply to admit the failure of Bitwise's business model. Instead, they used lie after lie to pull over $100 million into a dying venture through fraud. Olguin, Jr. and Soberal fabricated bank statements, lied to investors, provided false financial information to their board of directors, forged documents, and used buildings Bitwise no longer even owned as collateral for loans, all while lining their own pockets."

Prosecutors have disclosed that Olguin and Soberal manipulated financial information during board presentations and investor materials. They allegedly altered and forged bank statements, audits, and other financial records to inflate Bitwise's revenues, cash balances, and property holdings. The purpose behind the fraudulent activities was to cover employee salaries and benefits, including the co-CEOs' $600,000 annual pay, as well as to fulfill other financial obligations, like outfitting office spaces and repaying debts.

Bitwise Industries, which had 900 employees, collapsed on May 29 when Olguin Jr. and Soberal informed staff of an immediate furlough. The charges against the co-CEOs shed light on the deceptive practices that contributed to the company's downfall.

The investigation into Bitwise's fraud scheme serves as a reminder of the importance of financial transparency and accountability in the business world. As the case against Olguin Jr. and Soberal progresses, affected parties will be seeking justice and potential restitution for the losses incurred.

Legal proceedings will determine the fate of the co-CEOs as they face the consequences of their alleged fraudulent actions.