- A crypto businessman and an ex-LASD deputy admitted to crimes, including fraud, extortion, and tax evasion.
- The duo exploited law enforcement resources for personal gain, targeting rivals and committing financial crimes.
- Authorities revealed schemes involving fake warrants, armed intimidation, and $37M fraud against Meta Platforms Inc.
A cryptocurrency entrepreneur and a former Los Angeles County deputy have confessed to several federal crimes. These include conspiracy, extortion, tax evasion, and civil rights violations. The Department of Justice disclosed their plea agreements, outlining their involvement in a criminal network.
Adam Iza, a 24-year-old crypto trader, orchestrated the crimes using his platform, Zort. Eric Chase Saavedra, a former deputy, misused law enforcement resources to assist Iza. Their illegal actions involved intimidation, financial fraud, and exploiting law enforcement powers.
Illegal Activities Targeted Rivals and Victims
Iza hired off-duty deputies to act as enforcers against his business rivals. Saavedra, aged 41, used his position to facilitate these schemes. He accessed sensitive databases, fabricated warrants, and provided crucial information to aid Iza.
In one instance, Iza targeted a laptop he believed held $100 million in cryptocurrency. Saavedra secured a fraudulent warrant, claiming a firearms investigation. This led to an armed attempt to steal the laptop, which ultimately failed.
Victims of their schemes endured threats and violence. On August 30, 2021, deputies compelled a victim to pay $ 25,000 at gunpoint. Another victim was compelled to surrender $127,000 in a similar interaction in October of 2021.
Financial Fraud and Corruption
Iza’s crimes extended to large-scale financial fraud. Between 2020 and 2022, he defrauded Meta Platforms Inc. of $37 million. He accessed business accounts and used credit lines without authorization.
Saavedra also profited through his private security firm, Saavedra & Associates LLC. Iza paid $100,000 monthly between 2021 and 2024 for security services. This arrangement employed off-duty deputies as personal enforcers.
Both men committed tax evasion. Iza avoided paying $6.7 million in taxes for 2021. Saavedra failed to report $373,146 in income from his illegal activities.
Sentencing and Legal Response
Iza and Saavedra face serious consequences for their crimes. Iza, already in custody, faces up to 35 years in prison. Saavedra, who resigned from the sheriff’s department, could receive a 13-year sentence.
Federal authorities emphasized the severity of these crimes. The US Attorney’s Office appreciated actions that aim at corrupt persons and malpractice revelation. The Los Angeles County Sheriff’s Department collaborated with the federal prosecutors during the investigation.
These crimes highlight the risks of abuse within law enforcement and the crypto sector. Investigators remain committed to rooting out corruption. Both defendants will appear in federal court in Los Angeles in the coming days.
