Corrupt Cop Admit to Crypto Fraud and Extortion Charges

A cryptocurrency entrepreneur known as "The Godfather" and an LA County sheriff's deputy are facing federal charges, including tax evasion and conspiracy.

Adam Iza, founder of the Zort trading platform, and Deputy Eric Saavedra are accused of orchestrating a series of schemes involving extortion, fraud, and abuse of power, with both expected to plead guilty in the coming days.

Iza allegedly evaded $6.78 million in taxes in 2021 while stealing over $37 million through fraudulent access to Meta Platforms Inc.’s credit lines. Meanwhile, Saavedra, accused of leveraging his position to assist Iza, failed to report $373,146 in income that same year.

Prosecutors highlighted their criminal partnership, which included an attempted theft of a laptop believed to hold $100 million in cryptocurrency. Armed individuals hired by Iza tried to break into the victim’s home, but fled when confronted.

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Other incidents involved victims being held at gunpoint and forced to transfer money, with amounts ranging from $25,000 to $127,000. Officials described the duo’s actions as a betrayal of public trust, with one investigator labeling their relationship “a corrupt alliance of greed.”

Iza faces a potential 35-year sentence, while Saavedra could serve up to 13 years. Their pleas bring to light the dark intersection of cryptocurrency and corruption in law enforcement.

Alexander Stefanov