Crypto 'Godfather' and LA Cop Plead Guilty to Tax and Civil Rights Violations
In a striking turn of events, Adam Iza, self-proclaimed "crypto godfather" and founder of the Zort crypto trading platform, alongside Eric Chase Saavedra, a former Los Angeles County Sheriff’s Department deputy, have admitted to engaging in federal crimes including conspiracy, civil rights violations, and tax evasion.
The Department of Justice announced on January 17, 2025, that both individuals entered plea agreements revealing a complex web of intimidation, extortion, and fraudulent activities orchestrated by Iza. The young crypto entrepreneur, only 24 years old, has fashioned a notorious reputation, leveraging law enforcement connections to fuel illegal operations.
Exploiting Law Enforcement Resources
The involvement of Eric Saavedra, aged 41, underscores a concerning abuse of power within law enforcement. As a deputy and a task force officer with the US Marshals Service, Saavedra misused his credentials by tapping into sensitive law enforcement databases. He fabricated affidavits for search warrants under false pretenses to aid Iza's schemes, namely acquiring a laptop believed to hold cryptocurrency valued at over $100 million. A daring incident unfolded in January 2022 when a fabricated firearms investigation led to an attempted robbery that was thwarted when the intended victim defended their home.
A Network of Intimidation and Financial Crimes
Iza's illegal operations were marked by acts of intimidation and financial deceit. Allegations describe how off-duty LASD deputies, employed by Saavedra's private firm Saavedra & Associates LLC, served as enforcers to intimidate business rivals. Significant financial transactions were coerced from victims under duress, with reported incidents including a $127,000 transfer at gunpoint.
Further compounding the legal troubles, between 2020 and 2022, Iza allegedly defrauded Meta Platforms Inc., amassing over $37 million through unauthorized access to business accounts and credit lines. The extent of financial misdeeds extends to substantial tax evasion charges against both figures. Iza reportedly dodged $6.7 million in taxes for the year 2021, while Saavedra neglected to report $373,146 in income.
Consequences and Legal Proceedings
With Iza in federal custody since September 2024, he now faces up to 35 years behind bars. Saavedra, having resigned from his deputy position, could serve up to 13 years. The upcoming court appearances in Los Angeles signal further steps towards rectifying these grave misconducts.
US Attorney Martin Estrada emphasized the severity of these actions, stating, "The conduct admitted to in these plea agreements is deeply disturbing and cannot be tolerated." The collaboration between federal prosecutors and the Los Angeles County Sheriff’s Department underscores an ongoing commitment to eradicating corruption and safeguarding civil rights.
This high-profile case not only highlights the intersection of digital finance and law enforcement but also serves as a stark reminder of the ethical boundaries dictates by civic duties and organizational responsibilities. As the crypto world continues to evolve, maintaining vigilance against such criminal exploits remains an urgent priority for legal institutions and cryptocurrency communities alike.