Greenwich, Connecticut man Andrew Adler, age 31, was handed down a sentence of three years and five months in prison for his role in a fraud scheme that targeted investors in loans made to the Fresno-based startup, Bitwise Industries. As reported by the U.S. Attorney's Office for the Eastern District of California, Adler and his associate David Hardcastle engaged in fraudulent activities that resulted in significant losses for investors, leading to restitution and forfeiture orders totaling over $10 million.
Acting U.S. Attorney Michele Beckwith detailed how Adler, who received the sentence yesterday, contrived with Hardcastle to give Bitwise approximately $20 million in hard money loans. They were financed not with their own capital, but with investor funds - funds, deceitfully garnered through the manipulation of loan documents and an undisclosed secure interest reserve. This behavior not only obfuscated the true risk involved but also was cited by the FBI as a testament to the agency's determination to unearth such white-collar crimes, according to a statement obtained by the U.S. Attorney's Office.
In altering the loan documents, Adler and Hardcastle made it appear as though Bitwise Industries was paying a lower interest rate than was factual. Foley on the falsified representation, they secured investments under false pretenses, which ultimately unraveled when it became apparent that Bitwise was engaging in a Ponzi scheme. As the FBI's Special Agent in Charge Sid Patel pointed out, "The collapse of Bitwise Industries exposed Andrew Adler’s lies to investors in securing a multi-million-dollar loan, which he used to secretly line his pockets," as stated by the U.S. Attorney's Office.
Adler's co-conspirator, David Hardcastle, is still awaiting trial, maintaining his presumption of innocence, as due process necessitates. In the meantime, the masterminds behind Bitwise, CEOs Jake Soberal and Irma Olguin Jr., have already faced the conseuqences of their actions, each receiving substantial prison sentences for a scheme that led to over $115 million in investor losses, according to an announcement from the U.S. Attorney's Office.
