Crypto ‘Godfather’ and LA Police Plead Guilty to Tax, Civil Rights Violations
A cryptocurrency trader and Los Angeles County Sheriff's Department (LASD) deputy has pleaded guilty to federal crimes including conspiracy, civil rights violations and tax evasion.
The Justice Department announced the plea deals on January 17, alleging that 24-year-old Adam Izza, the self-proclaimed “crypto godfather” and founder of the Zort crypto trading platform, masterminded a scheme that included intimidation, extortion and fraud.
Eric Chase Saavedra, 41, a former LASD deputy and task force officer, said he misused law enforcement resources to aid Izan's illegal activities.
Court documents show that Iza hired off-duty LASD deputies as personal enforcers to target business rivals and threats. As a deputy and US Marshals Service task force officer, Saavedra illegally obtained sensitive law enforcement information, forged search warrant certificates, and misused his badge to use it as a vendetta.
In one instance, Iza tried to steal a laptop that he believed contained more than $100 million in cryptocurrency.
Prosecutors filed the charges against Saavedra in January 2022, alleging that a search warrant was obtained by falsely pretending that the target was involved in a firearms investigation. Saavedra provided the victim's location to Iza, who sent armed individuals to break into the victim's home.
The attempt failed when the victim fired a warning shot, after which Iza allegedly sent the victim a video of the botched robbery.
RELATED: Home Invaders Use Machete, Toblero To Steal Someone's Bitcoins
Intimidation, robbery and theft.
Prosecutors listed several other acts of violence related to the scheme.
In August 2021, LASD deputies held the victim at gunpoint at Iza's residence after forcing a $25,000 bank transfer. In October 2021, Iza forced another victim at gunpoint to hand over $127,000.
Saavedra's private security firm, Saavedra & Associates LLC, employs off-duty agents. Izza is said to be paying $100,000 per month for round-the-clock security from 2021 to 2024.
Beyond the alleged extortion, Iza's activities extended to money laundering. Between 2020 and 2022, Meta stole more than $37 million by defrauding platforms, accessing business accounts and associated lines of credit.
Both Iza and Saavedra pleaded guilty to federal tax crimes. Iza evaded $6.7 million in taxes for 2021, while Saavedra failed to report $373,146 in income.
Related: Crypto execs plan to attend Trump's inauguration – at a high price
Facing justice
Izza, who is in federal prison beginning in September 2024, faces up to 35 years in prison. Saavedra, who resigned from LASD, faces up to 13 years. Both are expected to appear in Los Angeles federal court in the coming days.
“The actions taken in these plea agreements are deeply disturbing and intolerable,” said US Attorney Martin Estrada. “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 liberties.”
Magazine: Godzilla vs. Kong: The SEC faces a tough battle with crypto legal firepower
