The cryptocurrency underworld has collided with law enforcement corruption as Adam Iza, self-proclaimed "The Godfather" of crypto, and Eric Chase Saavedra, a Los Angeles County Sheriff's Department (LASD) deputy, have both agreed to guilty pleas on a slew of federal charges, including civil rights conspiracy and tax evasion, as reported by the U.S. Attorney's Office, Central District of California.
Iza, 24, and Saavedra, 41, are accused of a concerted abuse of police power for personal gain, which involved intimidation, extortion, improper use of search warrants, and tax crimes; their upcoming appearances in United States District Court in downtown Los Angeles are imminent, and with their pleas, they face significant prison time, Iza up to 35 years and Saavedra up to 13 years, stated United States Attorney Martin Estrada, acknowledging cooperation with Sheriff Robert Luna and the LASD in addressing the corruption. "When law enforcement officers violate their oath, they betray not only the public but also the vast majority of officers who do the job the right way," Estrada said, "The conduct admitted to in these plea agreements is deeply disturbing and cannot be tolerated," added Akil Davis, Assistant Director in Charge of the FBI's Los Angeles Field Office, as stated by the U.S. Attorney's Office, Central District of California, emphasizing the bureau's commitment to rooting out corruption.
According to court documents, Iza's pattern of criminal behavior extended to hiring off-duty LASD deputies as his personal 'enforcers' against business rivals and utilizing their police powers to conduct illegal activities: Saavedra misused his access to law enforcement databases to dig up personal information for Iza, obtained court-authorized search warrants under pretenses, and abetted in other criminal acts including tracking and intimidating Iza's adversaries, as per the plea agreements. Saavedra had also indulged in tax evasion by failing to report substantial private income from his security company, which often employed other law enforcement officers.
The cooperation between Iza and Saavedra showcases brazen exploitation of both the criminal justice system and private data, with dangerous outcomes ranging from armed home invasions to massive financial thefts, including over $37 million stolen by Iza through fraudulent access to Meta Platforms Inc. accounts from 2020 to 2022, and Saavedra, catering to Iza's illegal whims, in hopes of continuing their profitable but illicit partnership; this lead to their incrimination, as "money leaves trails and IRS Criminal Investigation is the best in the world at finding and following those trails," said Special Agent in Charge Tyler Hatcher from the IRS Criminal Investigation, Los Angeles Field Office, as per the U.S. Attorney's Office, Central District of California. The FBI and IRS Criminal Investigation teams continue to investigate the broad scope of these crimes with the aid of LASD.
This case is the latest in a series underscoring the ongoing battle against corruption in law enforcement, with Assistant United States Attorneys Daniel J. O'Brien, J. Jamari Buxton of the Public Corruption and Civil Rights Section, and Maxwell K. Coll of the Cyber and Intellectual Property Crimes Section leading the prosecution.
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