Adam Iza, the owner of the cryptocurrency trading platform Zort, Inc., is facing serious federal charges for allegedly bribing deputies from the Los Angeles Sheriff’s Department (LASD) to gain access to confidential information, which he used in an attempt to extort a victim for their crypto holdings.
According to an FBI affidavit filed on September 23 and revealed on September 26 in a Los Angeles federal court, Iza, also known by his aliases Ahmed Faiq and “The Godfather,” is accused of paying substantial sums of money to three LASD deputies. This money was allegedly paid in exchange for access to sensitive police data, which Iza is said to have used to intimidate a former business partner, identified only as E.Z., into giving up a laptop containing valuable cryptocurrency.
Alleged Bribery and Extortion Plot Unfolds
Federal prosecutors claim that Iza paid $280,000 a month to the deputies in exchange for the confidential information. The affidavit alleges that Iza used this information to pressure E.Z. during a dispute related to cryptocurrency assets. The accusations against Iza trace back to November 2021, when the Riverside County Sheriff’s Department reported a troubling incident involving Iza and E.Z.
In the report, E.Z. recounted an alarming experience in which he believed Iza tried to kidnap him. According to E.Z., while the two were driving together, Iza asked to stop for food. As they stood near the car, an SUV approached, and two men armed with a handgun instructed E.Z. to “get in the car.” E.Z. managed to escape and immediately contacted the police, suspecting Iza had set up the encounter to obtain access to his cryptocurrency.
When authorities questioned Iza, he claimed that E.Z. had promised him $300,000 for a cryptocurrency deal. Iza also stated that he had called his bodyguards, fearing E.Z. intended to rob him. Further investigation revealed that the men in the SUV were former LASD deputies. One of them, who now works as a private security contractor for Iza, admitted to responding to Iza’s request for help, explaining that he had drawn his weapon because he believed E.Z. was armed. However, police later found that E.Z. had only been carrying an electric screwdriver.
Law Enforcement Involvement and Payments Through Zort
The investigation unearthed more disturbing details. Iza allegedly employed a private investigator, K.C., who revealed that Iza had sent him photos of sensitive law enforcement data, including a GPS search warrant for a phone number belonging to E.Z. The FBI discovered that an LASD deputy, accused of taking payments from Iza, had issued the warrant despite the case having no direct connection to E.Z.
Prosecutors claim that Iza funneled the payments to the LASD deputies through his company, Zort, and other businesses owned by his then-girlfriend. The complaint indicates that some payments reached as high as $200,000.
Further Allegations of Criminal Activity
The charges against Iza extend beyond bribery and extortion. Another person interviewed by the FBI claimed that Iza and E.Z. had broken into their home, with Iza impersonating an FBI agent during the robbery. In this incident, Iza allegedly stole a laptop containing cryptocurrency and held the victim at gunpoint, demanding their password.
Now facing charges of conspiracy against rights and tax evasion, Iza is accused of hiding tens of millions of dollars in income from 2020 to 2022. Federal prosecutors argue that Iza failed to report any income during this period, evading tax liabilities on his earnings.
This case highlights the dangerous intersection of law enforcement corruption and the rising trend of criminal activity surrounding cryptocurrency. Iza’s actions have led to a wide-reaching investigation, with serious legal consequences looming.
