Crypto entrepreneur Adam Iza, 26, has been sentenced to 78 months in federal prison after admitting to a scheme that involved off-duty Los Angeles sheriff’s deputies, fraud linked to Meta, and tax evasion. Prosecutors said Iza, who called himself “The Godfather,” used deputies to obtain confidential records, secure search warrants, and intimidate people involved in his disputes.
The prison term will run concurrently with a previously imposed 15-year sentence in a separate attempted Bitcoin robbery case. Court records cited in the case show Iza has been in custody since September 2024.
Guilty plea covered three federal offenses
Iza pleaded guilty to conspiracy against rights, wire fraud, and tax evasion. The sentence stems from conduct that prosecutors said combined misuse of law enforcement access with a large online fraud operation and efforts to conceal the resulting income from tax authorities.
According to the case record, Iza admitted that he hired off-duty sheriff’s deputies as personal security and then conspired with them to target individuals he was in conflict with. The conduct described in his plea agreement included accessing confidential law enforcement information and personal data, obtaining court-approved search warrants, and threatening or intimidating targets.
Deputies were used during disputes in 2021 and 2022
The conduct involving deputies took place between August 2021 and April 2022, according to the source material. During that period, Iza admitted using the off-duty officers for more than protection, instead enlisting them in actions aimed at rivals or other disputed individuals.
Authorities said the deputies were used to pull restricted records and support pressure campaigns against those targets. The case centers on Iza’s admitted role in the conspiracy rather than a broader account of every participant’s status.
Meta-linked scheme brought in tens of millions
The wire fraud charge related to a scheme involving Meta business manager accounts and associated lines of credit. Prosecutors said access to those accounts was obtained and then sold to advertising companies.
As described in court filings, Meta clients were charged for advertisements they did not authorize or purchase. Meta later refunded those customers and absorbed the losses. Investigators said roughly $37 million moved into accounts tied to Iza’s companies between 2020 and 2022.
Iza admitted to at least $36,360,844 in gross income through 2023. The government also said the conduct caused an Internal Revenue Service loss of $13,286,152, while corporate tax returns were not filed.
Proceeds were allegedly hidden through crypto custodians
Prosecutors said Iza took several steps to conceal the money and avoid taxes. Those steps included hiding his ownership of Zort, described in the case as his crypto trading platform, directing a co-schemer to buy personal items with business proceeds, and moving corporate income through cryptocurrency custodians.
The tax portion of the case focused on those concealment efforts as well as the failure to report and file properly. The sentencing outcome reflects the combination of the rights conspiracy, the Meta-related wire fraud, and the tax evasion charge.
Related sentencing has already taken place
The case has also led to a separate sentence for Iza’s former girlfriend, Iris Rabaya Au. She was sentenced to 18 months in prison for failing to report more than $2.6 million that prosecutors said she received through Iza’s activities.
She was also ordered to pay restitution and to forfeit luxury assets. With Iza now sentenced in this matter, the confirmed next step is that his 78-month term will be served at the same time as the earlier 15-year sentence already imposed in the attempted Bitcoin robbery case.
Source: decrypt.co