A federal court sentenced Iris Au, 37, of Irvine, California, to 18 months in prison after prosecutors said she failed to report more than $2.6 million that moved through her accounts from 2020 to 2023 in connection with Adam Iza’s criminal activity.

Au had previously pleaded guilty in March 2025 to filing a false tax return. Authorities said the case extended beyond unreported income, alleging that she also helped move Iza’s funds through shell companies and bank accounts and used roughly $16 million to purchase cryptocurrency for him.

Tax case tied to larger criminal proceeds

According to prosecutors, Au received more than $2.6 million connected to Iza’s illegal activities but reported only a small portion of that income on her tax filings. Investigators said she concealed both entities and income from her tax preparer before submitting returns that understated what she had actually received.

The sentence centers on the tax offense, but the government described her role as part of a broader effort to handle and redirect money linked to Iza. That included moving funds through accounts opened in the names of shell companies, prosecutors said.

Alleged movement of funds and crypto purchases

Court filings described Au as helping channel money for Iza across several uses. Prosecutors said about $16 million was used to acquire cryptocurrency on his behalf, while other funds were directed into bank accounts and corporate structures created to move the money.

The government also alleged that around $1 million in cash was paid to Los Angeles County Sheriff’s Department deputies who had been hired as private security. Prosecutors said the remaining money was spent on real estate, vehicles, jewelry, clothing, and nearly $10 million in leisure expenses.

Restitution and asset forfeiture

In addition to the prison term, Au was ordered to pay $1.48 million in restitution. The court also ordered the forfeiture of assets identified by prosecutors as tied to the conduct.

Those assets include luxury cars, designer handbags, and three sculptures themed around “The Godfather,” according to the case details summarized by prosecutors.

What comes next for Iza

Adam Iza faces a separate sentencing after pleading guilty to conspiracy against rights, wire fraud, and tax evasion. His case remains distinct from Au’s sentencing, even though prosecutors tied her conduct to his activities.

Iza has already received a 15-year prison sentence in Connecticut in a related Bitcoin robbery and kidnapping scheme. The California case shows how alleged crypto-linked criminal conduct can also produce tax charges, banking-related allegations, and asset forfeiture actions beyond the underlying offenses.

Source: Cryptopolitan