Federal prosecutors have accused Adam Iza, owner of the cryptocurrency trading platform Zort, Inc., of bribing Los Angeles Sheriff’s Department (LASD) deputies for access to sensitive information in an attempt to extort a victim for their crypto holdings.
According to an FBI affidavit filed in a Los Angeles federal court on September 23 and made public on September 26, Iza allegedly paid three LASD deputies to unlawfully obtain confidential police data.
Iza, also known by his aliases Ahmed Faiq and “The Godfather,” allegedly boasted about paying $280,000 a month to the deputies.
He is accused of using this illicitly obtained information to intimidate and coerce a person identified only as E.Z. into surrendering a laptop containing valuable cryptocurrency assets.
Accusations Against Iza Date Back to 2021
The accusations against Iza date back to November 2021, when a report by the Riverside County Sheriff’s Department detailed a disturbing encounter between Iza and E.Z.
The two had known each other for two years and were previously involved in a crypto business together.
According to the report, while driving together, Iza requested to stop for food. As they were standing by the car afterward, an SUV pulled up, and two men exited.
One of the men, armed with a handgun, instructed E.Z. to “get in the car.”
E.Z. managed to escape and called the police, fearing that Iza was attempting to kidnap him to obtain access to his crypto assets.
When questioned by a responding officer, Iza claimed that E.Z. had agreed to give him $300,000 for some cryptocurrency.
He also stated that he had contacted his bodyguards because he believed E.Z. was attempting to rob him.
Further investigation revealed that the two men in the SUV were former LASD deputies.
One of them, now a private security contractor for Iza, admitted to responding to Iza’s call for assistance and stated that he drew his gun because he was informed that E.Z. was armed.
E.Z., however, was only carrying an electric screwdriver at the time.
The complaint also states that Iza employed a private investigator, identified as K.C., who claimed that Iza had sent him photos of sensitive law enforcement data.
These included a GPS search warrant targeting a phone number believed to belong to E.Z.
The FBI later discovered that an LASD deputy, accused of receiving payments from Iza, had issued a search warrant that included E.Z.’s number, despite the case having no relation to him.
Iza Made Payments to LASD Deputies Through Zort
Iza allegedly made payments to the LASD deputies through Zort and other businesses owned by his then-girlfriend.
The complaint noted that these payments occasionally amounted to as much as $200,000.
The accusations against Iza are not limited to bribery and extortion.
An additional person interviewed by the FBI claimed that Iza and E.Z. broke into their home, with Iza impersonating an FBI agent.
Iza allegedly stole a laptop containing cryptocurrency and held the victim at gunpoint, demanding the password.
Iza now faces charges of conspiracy against rights and tax assessment evasion.
Prosecutors allege that he concealed the receipt of tens of millions of dollars and failed to report any income taxes from 2020 to 2022.
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