Adam Iza, a 26-year-old self-styled “Godfather,” received a sentence of 78 months in prison and was ordered to pay $23.4 million in restitution after being convicted of fraud, tax evasion, and conspiring with former Los Angeles County Sheriff’s Department deputies. Iza’s prison term, handed down by U.S. District Judge Percy Anderson, will be served concurrently with a 15-year sentence he received last month for attempting to rob Bitcoin at gunpoint.
Crypto Fraud Scheme and Use of Deputies
Between August 2021 and April 2022, Iza employed off-duty sheriff’s deputies as private security. According to court documents, he conspired with these deputies to access confidential law enforcement records and personal information about individuals with whom he had financial or personal disputes. The deputies also used court-approved search warrants to track targets and acted to intimidate or threaten these individuals at Iza’s direction.
Prosecutors wrote in their sentencing memorandum, “People with money cannot buy warrants, arrests, badges, or firearms for use in private disputes.”
The U.S. Attorney’s Office for the Central District of California stated Iza pleaded guilty in January 2025 to conspiracy against rights, wire fraud, and tax evasion. He has been detained since September 2024.
Iza also admitted to moving corporate income to cryptocurrency custodians in an effort to evade tax obligations, and to concealing his ownership of Zort, his crypto trading platform. He orchestrated significant financial flows through his companies, receiving at least $36.4 million in gross income through 2023 and causing the IRS to lose $13.3 million in tax revenue.
Mini dictionary: Zort, a cryptocurrency trading platform that Iza reportedly owned and used to move illicit funds while concealing his ownership from authorities.
| Person | Sentence | Role/Conviction |
|---|---|---|
| Adam Iza | 78 months + 15 years (concurrent) | Crypto fraud, tax evasion, conspiracy, attempted Bitcoin robbery |
| Eric Chase Saavedra | 21 months | Ran security firm, ex-federal task force officer |
| Michael David Coberg | 63 months | Extortion, arranged false drug arrest |
| Scott Allen Simpkins | 18 months | Obstructed extortion investigation |
| David Anthony Rodriguez | 12 months | Filed false warrant application |
| Iris Rabaya Au | 18 months | Failed to report $2.6 million, forfeiture of assets |
Impersonation and Armed Robbery Incident
In a separate incident, Iza was involved in an armed robbery in 2018, where he allegedly posed as a Federal Bureau of Investigation agent in order to gain access to digital assets. According to witness testimony, Iza held an individual known as “Victim T.W.” and his girlfriend at gunpoint and demanded the passwords for a laptop that contained cryptocurrency holdings. Iza was subsequently charged with conspiracy and tax evasion and was arrested in 2024.
The Department of Justice further noted that five deputies who worked for Iza have all been convicted for their involvement. Among them, Eric Chase Saavedra operated the security firm that provided these services. Other deputies faced sentences ranging from 12 to 63 months for acts including extortion, obstructing investigations, and filing false documents. These actions extended to staging a false drug arrest at Iza’s Bel Air mansion.
Restitution and Asset Forfeiture
The restitution orders total $23.4 million, while a broader financial impact figure puts Iza’s gains from these activities at $36.4 million. He reportedly failed to file any corporate tax returns, moving funds through crypto custodians and making significant personal expenditures using illicit proceeds.
Iza’s former girlfriend, Iris Rabaya Au, was sentenced to 18 months in prison for not reporting $2.6 million she received through his operations. She was ordered to pay over $1.48 million in restitution and to forfeit luxury assets, including high-performance vehicles, designer handbags, and statues associated with the “Godfather” identity.
Restitution orders against Iza and Au include luxury vehicles, designer goods, and three sculptures, in addition to the millions in cash penalties.
