Crypto Godfather and Ex-LA Cop Plead Guilty to Tax Evasion and Crypto Fraud

Adam Iza, known as “The Godfather” and the founder of Zort, a cryptocurrency trading platform, along with former LA County sheriff’s deputy Eric Saavedra, are set to plead guilty to multiple federal charges, including tax evasion, wire fraud, and conspiracy against rights. Their criminal activities serve as a chilling reminder of the potential for abuse within the crypto space.

• Adam Iza and Eric Saavedra plead guilty to tax evasion and fraud.
• Iza dodged $6.78 million in taxes and stole $37 million from Meta.
• Saavedra used his badge to facilitate their crimes, including a failed laptop heist.

The Crimes

Adam Iza, who has been in federal custody since September 2024, evaded $6.78 million in federal taxes in 2021. His criminal endeavors extended to defrauding Meta Platforms Inc. of over $37 million from 2020 to 2022. Iza gained unauthorized access to Meta’s business manager accounts and exploited associated lines of credit, effectively pulling off a digital heist that rivals the audacity of robbing Fort Knox.

Eric Saavedra, a former law enforcement officer, was not just a passive participant. In 2021, he pocketed $373,146 in unreported income. Beyond financial misdeeds, Saavedra used his position to track down victims and secure illegal warrants, aiding Iza in their schemes. Their partnership was aptly described by Tyler Hatcher, special agent in charge for the IRS Criminal Investigation’s Los Angeles Field Office, as “little more than a thuggish partnership between a thief and a crooked cop.”

“Mr. Iza’s and Mr. Saavedra’s relationship was little more than a thuggish partnership between a thief and a crooked cop. The public should be able to trust members of law enforcement, but Mr. Saavedra violated his oath for a payday. Mr. Iza stole from anyone he could and found a big payday by ripping off Meta so that he could afford to pay for Mr. Saavedra’s corrupt protection and assistance.” – Tyler Hatcher, IRS Criminal Investigation’s Los Angeles Field Office

The Laptop Heist

One of their most daring attempts involved targeting a laptop believed to contain over $100 million in cryptocurrency. Saavedra obtained an illegal warrant, tracked down the victim, and provided the address to Iza. In March 2022, Iza sent three armed individuals to break into the victim’s home and steal the laptop. The attempt failed when the victim fired a gunshot, causing the would-be thieves to flee.

“After securing the illegal warrant, Saavedra tracked down the victim and provided the victim’s address to Iza. In March 2022, Iza caused three armed individuals to try to force entry into the victim’s home to steal the laptop. The individuals fled after the victim fired a gunshot in their direction.” – Federal prosecutors

The Partnership

The collaboration between Iza and Saavedra was a sinister alliance that leveraged Saavedra’s law enforcement powers to facilitate their criminal activities. Saavedra’s role extended beyond financial misdeeds, as he actively participated in tracking victims and aiding in their extortion schemes. This corruption of power not only undermines public trust but also exposes the vulnerabilities within the crypto ecosystem.

Legal Consequences

As they prepare to enter their guilty pleas in an LA courthouse, the potential consequences loom large. Iza faces up to 35 years in federal prison, while Saavedra could be looking at up to 13 years. These sentences reflect the severity of their crimes and the need for accountability in the face of such abuse.

Implications for Crypto

While we advocate for the transformative potential of Bitcoin and blockchain technology, cases like these highlight the dark alleys within the crypto world. They serve as a stark reminder that vigilance against fraud and corruption is crucial as we push for adoption and education in the crypto space. It’s essential to balance our optimism with a realistic understanding of the challenges and risks that come with disrupting the financial status quo.

The crypto community must remain vigilant, and regulators need to take note. The misuse of digital currencies by individuals like Iza and Saavedra underscores the urgent need for robust oversight and regulatory measures to prevent such incidents. As we champion decentralization and privacy, we must also call out the scammers and corrupt actors with equal vigor, ensuring that the future of finance remains secure and trustworthy.

Key Takeaways and Questions

• What federal crimes are Adam Iza and Eric Saavedra pleading guilty to?

  Adam Iza is pleading guilty to conspiracy against rights, wire fraud, and tax evasion. Eric Saavedra is pleading guilty to conspiracy against rights and subscribing to a false tax return.

• How much money did Adam Iza avoid in federal taxes?

  Adam Iza avoided $6.78 million in federal taxes in 2021.

• What was the nature of the crime involving a laptop with cryptocurrency?

  Iza and Saavedra targeted a person believed to have a laptop with over $100 million in cryptocurrency. Saavedra obtained an illegal warrant, tracked the victim, and provided the address to Iza, who then sent three armed individuals to steal the laptop. The attempt failed after the victim fired a gunshot.

• How much money did Adam Iza steal from Meta Platforms Inc.?

  Adam Iza stole more than $37 million from Meta Platforms Inc. through fraudulent access to their business manager accounts and associated lines of credit from 2020 to 2022.

• What potential prison sentences do Adam Iza and Eric Saavedra face?

  Adam Iza faces up to 35 years in federal prison, while Eric Saavedra faces up to 13 years.

This case underscores the need for a balanced approach to the crypto revolution. While Bitcoin and other cryptocurrencies hold immense potential to transform finance, the industry must confront its challenges head-on. We must continue to advocate for decentralization, privacy, and disruption while also ensuring that the sector remains free from the clutches of fraud and corruption.