Crypto Kingpin and LA Sheriff Deputies Linked in FBI-Exposed Extortion Ring

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CCN2024/09/28 04:27

By:CCN

Key Takeaways

Adam Iza, the founder of Zort, allegedly bribed LASD deputies to obtain sensitive information and illegally file search warrants.
Prosecutors accused Iza of using his illegal access to police data to extort a victim.
He may face significant prison time and fines if convicted of the charges against him.

Adam Iza, the enigmatic founder of the Zort cryptocurrency platform, has been arrested on allegations of architecting a complex web of corruption and criminal activity.

Dubbed “The Godfather,” Iza’s carefully constructed facade of success has crumbled under the weight of allegations involving bribery, extortion, and tax evasion.

“The Godfather”

Authorities arrested Adam Iza, founder and CEO of the cryptocurrency trading platform Zort, Inc., after accusations surfaced that he bribed three Los Angeles Sheriff’s Department (LASD) deputies to file search warrants and access sensitive police data illegally, according to an FBI affidavit filed in federal court.

Iza, who is also known as Ahmed Faiq and “The Godfather,” allegedly boasted about paying the deputies $280,000 per month. According to prosecutors, he used the illegally obtained information to extort a victim, E.Z., into handing over a laptop containing cryptocurrency.

In addition to the bribery allegations , Iza received tax evasion charges for allegedly hiding millions of dollars in income through shell companies. The complaint alleges that he spent the laundered funds on luxury items such as a Lamborghini Aventador, a Rolls Royce Phantom, a Bel Air mansion, and cosmetic surgery.

Iza’s arrest occurred on Sept. 23 and he will appear in court on Oct. 8. His attorney, Josef Sadat, denied the allegations and vowed to prove Iza’s innocence.

The U.S. Attorney’s Office has not yet announced whether the three LASD deputies involved in the alleged bribery scheme will face charges. Recently, authorities relieved several other deputies of duty, including a detective from the department’s notorious anti-gang unit. This was due to their involvement in a separate federal investigation.

The Allegations

Iza orchestrated a kidnapping attempt and used his connections within the Los Angeles Sheriff’s Department to harass and intimidate his victim , according to an FBI affidavit.

In November 2021, Iza allegedly plotted to kidnap a business associate identified as “E.Z.” during a meeting in Riverside County. The kidnapping attempt was carried out by two men who were later identified as a former LASD deputy and a former custody assistant.

Federals involved in Iza’s case. l Credit: CourtListener

After escaping the kidnapping attempt, E.Z. began receiving threatening text messages from Iza and his associates. The messages contained sensitive personal information, including images from law enforcement databases. The prosecutors accused Iza of bribing LASD officials to obtain this information.

Possible Consequences

In the U.S., conspiracy against rights and evasion of tax assessments is a serious federal crime with severe legal consequences. Conspiracy against rights, under 18 U.S.C. § 241, makes it illegal to conspire to harm, threaten, or intimidate anyone exercising their constitutional rights. If convicted, the penalties can vary depending on the outcome of the conspiracy. For less severe offenses, individuals can face up to 10 years in prison and substantial fines.

However, the punishment escalates to life imprisonment or even the death penalty. This in case the conspiracy results in serious harm or involves aggravated crimes such as kidnapping or sexual abuse.

Convictions for tax evasion can result in up to five years in prison. They also carry heavy fines, reaching $100,000 for individuals and $500,000 for corporations. In addition to imprisonment and fines, offenders often receive orders to repay the taxes with added interest and penalties.

Furthermore, Iza may incur civil penalties, such as a 75% fraud penalty on unpaid tax.