Crypto ‘godfather’ and LA cop plead guilty to tax and civil rights crimes

Crypto “godfather” Adam Iza and former LA cop Eric Chase Saavedra have pleaded guilty to charges of tax and civil rights crimes. According to the Department of Justice (DOJ) document, Iza, who is a cryptocurrency businessman, worked with Los Angeles Sheriff’s Department (LASD) deputy Saavedra. They admitted to violating federal crimes, including conspiracy, tax evasion, and civil rights violations.

According to the DOJ filing, Adam Iza, the founder of the Zort cryptocurrency trading platform, executed a scheme involving fraud, intimidation, and extortion. His accomplice, Saavedra misused law enforcement resources at his disposal to aid Iza’s operations.

The duo targeted several victims in the Los Angeles area, carrying out their brazen acts without remorse, the DOJ report read.

DOJ charges crypto ‘godfather’ and LASD deputy 

According to the DOJ document, Iza enlisted several off-duty deputies to help him target individuals he saw as threats. According to a previous filing, Iza paid three deputies to carry out illegal activities, including unlawful search warrants and illegal access to police records, noting that he paid about $280,000 to the deputies. He was also accused of using police records to gain information to coerce individuals into giving up their assets.

Saavedra, being in a position of power, used his authority as a deputy and a task force official with the United States Marshal Services to help Iza illegally access sensitive law enforcement databases. He also helped Iza obtain illegal search warrants.

According to authorities, Iza used Saavedra to target one holder of a wallet containing about $100 million in digital assets.

According to prosecutors, Saavedra secured an illegal search warrant in January 2022, claiming that the recipient was involved in a firearms investigation. After securing the warrant, he sent the location to Iza, who sent armed thugs to the address to break into the victim’s home. Things did not go according to plan as the victim fired warning shots. Iza later sent the victim a video of the botched robbery.

Iza and Saavedra to face justice 

According to the prosecutors, the group was implicated in other acts of violence and intimidation as well. For example, in August 2021, three deputies held a victim at gunpoint at Iza’s house. The victim had to transfer $25,000 from his bank before he was released.

In another instance, Iza held another victim at gunpoint, forcing them to transfer $127,000 before releasing them.

The prosecutors claimed that Saavedra owned a private security firm, Saavedra & Associates LLC, which enlisted off-duty deputies. Reports claimed that Iza paid $100,000 into the company’s account every month between 2021 and 2024 for all-around security.

Iza was also alleged to have carried out financial fraud between 2020 and 2022. Prosecutors have accused him of stealing about $37 million from Meta Platforms Inc. by accessing business accounts and connected credit lines. The duo also admitted to committing federal tax fraud, with Iza failing to pay $6.7 million in taxes in 2021, while Saavedra failed to report a $373,146 income.

According to prosecutors, Iza has been in federal custody since September 2024 and is looking at up to 35 years in prison. Saavedra, who has since resigned from the LAPD, is looking at 13 years.

Both men will have their day at a Los Angeles federal court. Reacting to the case, United States Attorney Martin Estrada noted that the act was deeply disturbing and will not be tolerated. “I am grateful for the cooperation of Sheriff Robert Luna and the Los Angeles County Sheriff’s Department in working with our office to root out corruption and uphold civil rights,” Estrada added.

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