- Crypto Godfather Iza and LASD Deputy Saavedra guilty of fraud and civil rights abuse.
- Failed $100M crypto heist linked to Iza and Saavedra’s misuse of police authority.
- Iza and Saavedra face decades in prison for fraud, extortion, and tax evasion schemes.
Two Los Angeles residents, Adam Iza, known as the “Crypto Godfather,” and Eric Chase Saavedra, a deputy with the Los Angeles County Sheriff’s Department (LASD), have pleaded guilty to federal charges. The charges include conspiracy against rights, wire fraud, and tax evasion. The case highlights extreme misconducts of power, which are unlawful, such as civil rights abuses and misuse of police resources.
Iza and Saavedra’s Conspiracy Exposed
Court documents reveal that Iza, a 24-year-old cryptocurrency businessman, used off-duty deputies, including Saavedra, to intimidate and extort those he perceived as enemies. Saavedra, 41, used his position as a law enforcement officer to obtain information from sensitive law enforcement databases and dig up personal information on Iza’s targets. He improperly obtained search warrants, falsely claiming criminal investigations to further Iza’s agenda.
In one instance, they targeted a victim believed to possess a laptop containing over $100 million in cryptocurrency. Saavedra secured a warrant under pretenses, providing the victim’s location to Iza. Iza subsequently orchestrated an armed home invasion, which failed when the victim fired a warning shot.
Saavedra also facilitated other abuses of power, including an incident where he and other deputies forcibly detained a victim at Iza’s residence. The victim was forced to send $25,000 to Iza. These acts were part of a greater conspiracy under which Iza paid Saavedra and his private security firm for their illicit services.
Fraud and Tax Evasion Charges
In addition to the conspiracy, Iza said he fraudulently accessed business accounts and credit lines at Meta Platforms Inc. from 2020 to 2022 and stole $37 million. The stolen funds supported Iza’s lavish lifestyle, including substantial payments for Saavedra’s protection.
Both men also pleaded guilty to tax-related offenses. Iza evaded over $6.7 million in federal income tax for 2021, while Saavedra failed to report approximately $373,146 in income from his unlawful activities.
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Penalties and Investigation
Iza’s prosecution could result in up to 35 years in federal prison for conspiracy, wire fraud, and tax evasion. Saavedra may be sentenced to 13 years for conspiracy and filing a false tax return. The defendants have pleaded guilty following investigations conducted by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation, and the Los Angeles County Sheriff’s Department.
The authorities involved in the case, including US Attorney Martin Estrada, promised to continue fighting corruption and for civil rights. The two defendants are expected to appear in Los Angeles federal court to formalize their plea agreements in the coming days.
