Jake Soberal has reported to Atwater and Irma Olguin Jr. to Victorville to serve their sentences related to their Bitwise convictions. Photo illustration by Cecilia Lopez, Federal Bureau of Prisons photos

Jake Soberal and Irma Olguin Jr., the former co-CEOs of Bitwise Industries, have reported to prison to begin their sentences. 

A representative from the Federal Bureau of Prisons (FBOP) said Tuesday afternoon that Soberal is in custody at the United States Penitentiary (USP) Atwater in Merced County, and Olguin is in the FBOP’s custody at the Federal Correctional Institution (FCI) Victorville Medium I.

The court had recommended that Soberal be sent to the Federal Correctional Institution, Lompoc, in Santa Barbara County.

It is unknown if Soberal will stay at USP Atwater or be transferred to Lompoc, as the court recommended. USP Atwater is a high-security prison with a medium-security satellite camp.

Olguin will be held at FCI Victorville Medium I, which has 1,644 male and female inmates.

Abby Lee Miller, who starred in the TV series Dance Moms, was an inmate at Victorville in 2017. 

In December, Judge John Coughenour sentenced Soberal to 11 years and Olguin to nine years. The two were convicted of wire fraud in a $115 million scheme that led to the collapse of the tech/real estate company. 

Soberal and Olguin will have to pay back $114.6 million in restitution.

In January, a tax lien was filed with the Fresno County Assessor/Recorder against Soberal to recover those funds.

Paul Dictos, the Fresno County Assessor/Recorder, saw the warning signs about Bitwise well before the company’s collapse. 

“When I read the audit reports and documents filed with my office,  I noticed more red flags than in a USSR rally,” Dictos said. “It was a startup that never started.”

Before the sentencing, Soberal and Olguin pleaded for a reduced sentence of five years, with Soberal citing his Christian values and community service. He admitted that his identity was deeply tied to Bitwise and that he let power and control consume him. Olguin, who identifies as queer, expressed regret for the damage her actions caused to the LGBTQ+ community.