Former Cred executives Schatt and Podulka pleaded guilty to wire fraud, admitting to misleading customers regarding the company’s finances. This plea agreement reveals they presented selective positive information while hiding negative developments to induce customers to lend funds to Cred.
The collapse of Cred resulted in significant customer financial losses estimated at up to $150 million. A federal judge has scheduled a sentencing hearing, where Schatt could face up to 72 months and Podulka up to 62 months in prison.
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