Federal prosecutors have charged Adam Iza, the owner of the cryptocurrency trading platform Zort, Inc., with bribing deputies from the Los Angeles Sheriff’s Department (LASD) to access sensitive police information for the purpose of extorting a victim for their cryptocurrency holdings.
According to an FBI affidavit filed in a Los Angeles federal court on September 23 and released on September 26, Iza allegedly paid three LASD deputies to illegally obtain confidential police data. Known by aliases including Ahmed Faiq and “The Godfather,” Iza purportedly boasted about paying $280,000 per month to these deputies.
Allegations of Intimidation and Coercion
Iza is accused of using the information obtained through these bribes to intimidate and coerce an individual identified only as E.Z. into surrendering a laptop containing valuable cryptocurrency assets.
The allegations against Iza date back to November 2021. At that time, a report from the Riverside County Sheriff’s Department detailed a troubling encounter between Iza and E.Z., who had known each other for two years and previously collaborated on a crypto business.
During a drive together, Iza allegedly asked to stop for food. Afterward, as they stood by the car, an SUV approached, and two men exited. One of these men, armed with a handgun, ordered E.Z. to “get in the car.” E.Z. managed to escape and contacted the police, fearing that Iza intended to kidnap him to seize his crypto assets.
Discrepancies and Further Investigations
When questioned by police, Iza claimed that E.Z. had agreed to pay him $300,000 for cryptocurrency. He further alleged that he had contacted his bodyguards, believing E.Z. was attempting to rob him. However, investigations 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 and claimed he drew his weapon because he believed E.Z. was armed. In reality, E.Z. was only carrying an electric screwdriver.
The complaint also indicates that Iza employed a private investigator named K.C., who reported receiving sensitive law enforcement data from Iza, including a GPS search warrant targeting E.Z.’s phone number. The FBI later found that an LASD deputy, implicated in receiving payments from Iza, had issued a search warrant involving E.Z.’s number, despite the case having no connection to him.
Financial Transactions and Additional Charges
Iza allegedly funneled payments to the LASD deputies through Zort and other businesses owned by his then-girlfriend, with payments sometimes reaching as high as $200,000.
The accusations against Iza extend beyond bribery and extortion. An additional individual 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.
Currently, Iza faces charges of conspiracy against rights and tax assessment evasion, with prosecutors alleging that he concealed the receipt of tens of millions of dollars and failed to report any income taxes from 2020 to 2022.