In a recent unfolding of events, Andrew Adler, aged 31, from Greenwich, Connecticut, has entered a guilty plea for his involvement in a fraudulent scheme that swindled investors out of a staggering $20 million, these funds were earmarked for loans to the now-defunct Fresno company, Bitwise Industries. The announcement of the plea was brought to light by the Acting U.S. Attorney Michele Beckwith, as Adler faces serious charges of conspiracy to commit wire fraud, as per the U.S. Attorney's Office.
The deception unfolded between December 2022 and May 2023 when Adler, together with his associate, David Hardcastle, 61, of Fresno, managed to channel approximately $20 million to Bitwise through their concocted entity known as Startop Investments LLC; they gathered a syndicate of investors to back these loans, but with forgery and document alteration, showed Bitwise owing far less interest than originally agreed, which made the loans seem safer to the investors, deceiving them of the true risk involved. According to a statement from the U.S. Attorney's Office, Adler and Hardcastle engaged in forgery by doctoring the signature of Bitwise's Co-CEO Jake Soberal on the tampered documents.
While the scheme initially would seem lucrative, with Adler and Hardcastle receiving significant origination fees and standing to earn millions from higher undisclosed interest rates, the collapse of Bitwise resulted in investors facing drastic losses, nearly the entirety of their invested capital. The fraud came to full public attention with Hardcastle's indictment on February 3, with charges mirroring those of conspiracy to commit wire fraud and wire fraud, as detailed in the U.S. Attorney's Office announcement. Yet Hardcastle retains the presumption of innocence until proven guilty beyond a reasonable doubt.
With the sentencing for Adler set for June 2, 2025, by U.S. District Judge Jennifer L. Thurston he might find himself facing up to 20 years in prison alongside a fine of $250,000 for his wrongful actions, while Hardcastle could encounter identical repercussions for each count, should he be convicted of the charges levied against him. The investigation led by the FBI draws attention to the layers of oversight and accountability that are needed in the financial investment industry as described in a press release from the U.S. Attorney's Office. Assistant U.S. Attorneys Joseph D. Barton and Cody S. Chapple lead the prosecution, emphasizing the gravity of such fraudulent conduct and its impact on trusting investors.
