A cryptocurrency businessman who had specified himself as the “Crypto Godfather,” along with a deputy officer from the Los Angeles Sheriff’s Department (LASD), has agreed to plead guilty to federal criminal charges.
These charges have branched for their involvement in a scheme that employed intimidation, extortion, and the use of illegal search warrants against multiple victims. Both defendants are expected to make their initial court appearances in downtown Los Angeles in the coming days.
According to the reports by the US Attorney Press Release, Adam Iza, who has an apartment in Beverly Hills and a Newport Coast, was named in a three-count superseding information filed in L.A. federal court this week. He is been facing charges of a scheme against the rights, wire fraud, and tax evasion.
Eric Chase Saavedra, an LASD deputy and former federal task force officer has also been personally charged with conspiracy against the rights and the subscribing to a false tax return.
In his agreement, Iza has admitted to hiring the off-duty LASD deputy officers to act as administrators against perceived enemies. Court documents also highlight that Iza has involved these deputies in numerous legal process abuses.
One of the deputies employed by Iza was Saavedra, who also worked as a federal officer on the U.S. Marshals Service’s Fugitive Task Force.
Saavedra founded a private security company, Saavedra & Associates, which provided security services and often employed active LASD deputies and other law enforcement officers. Iza reportedly hired Saavedra’s company for round-the-clock security at a typical cost of $100,000 per month.
Saavedra admitted in his agreement that he improperly used his authority in illegal activities, and as a sworn law enforcement officer to obtain court-authorized search warrants related to individuals with whom Iza had disputes.
It also includes a warrant to search a person’s home and another to obtain location information for yet another individual.
Starting in the year 2021, Saavedra misused his LASD credentials to access sensitive law enforcement databases, obtaining personally identifiable information for individuals involved in Iza’s personal or business disputes, including their associates and family members.
Together with others, Iza and Saavedra used this confidential information to find, intimidate, harass, threaten, and extort these individuals, employing encrypted communications apps like Telegram to evade law enforcement detection.
In March 2022, Iza allegedly orchestrated a break-in at the victim’s home by three armed individuals who fled after the victim fired a gunshot. Following this, Iza sent the victim a video of the attempted robbery, as stated by the Department of Justice.
Other violent incidents detailed include an event in August 2021 when two LASD deputies held a victim at gunpoint inside Iza’s residence. Subsequently, Iza facilitated a transfer of $25,000 from the victim’s bank account to his own.
Another incident in October 2021 involved Iza personally holding a victim at gunpoint, demanding the transfer of $127,000 to himself, according to federal prosecutors.
Iza also admitted to stealing more than $37 million by fraudulently accessing business manager accounts and associated lines of credit belonging to Meta Platforms Inc.
Tyler Hatcher, A special agent in Charge of IRS Criminal Investigation in the Los Angeles Field Office said, “Mr. Iza’s and Mr. Saavedra’s relationship was little more than a thuggish partnership between a thief and a corrupt cop.”
He further added, “The public should be able to trust members of law enforcement; however, Mr. Saavedra violated his oath for financial gain. Mr. Iza stole from anyone he could and found a big payday by ripping off Meta to afford corrupt protection and assistance from Mr. Saavedra.”
However, After pleading guilty, Iza could face up to 35 years in federal prison, while Saavedra faces a potential sentence of up to 13 years, according to prosecutors.
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