Crypto Company Owner Accused Of Paying Police For Extortion Scheme

According to Cointelegraph, federal prosecutors have alleged that Adam Iza, the owner of the crypto trading platform Zort, Inc., paid three Los Angeles Sheriff’s Department (LASD) deputies to unlawfully file search warrants and access police data. This information was allegedly used to extort a victim for their cryptocurrency. An FBI affidavit filed in an LA federal court on Sept. 23 and made available on Sept. 26 claims that Iza, also known as Ahmed Faiq and “The Godfather,” boasted about paying $280,000 a month to the deputies. He is accused of using police information to coerce an alleged victim, identified only as E.Z., into handing over a laptop used to store crypto. A message obtained by the FBI reportedly shows Iza admitting to these payments. According to a November 2021 Riverside County Sheriff’s Department report reviewed by the FBI, E.Z. claimed that Iza attempted to kidnap him to access his crypto. E.Z. stated that while driving Iza, they stopped for food, and an SUV pulled up with two men, one of whom approached E.Z. with a handgun and told him to “get in the car.” E.Z. fled and called the police, believing Iza was behind the kidnapping attempt. Iza told responding officers that E.Z. had agreed to give him $300,000 for some crypto but became concerned about being kidnapped and texted his bodyguards for help. The men in the SUV were both former LASD deputies, with one claiming to own a security company and work for Iza. The former deputy said he held his gun by his side because he was told E.Z. was armed. The complaint alleges that E.Z. was subjected to a “campaign of intimidation and harassment” from Iza, including receiving intimidating messages showing his information in a police database. A private investigator hired by Iza claimed that Iza sent him photos of sensitive law enforcement data and a picture of a GPS search warrant on a phone number believed to belong to E.Z. The FBI later found a search warrant made by an LASD deputy accused of receiving payments from Iza, which included E.Z.’s number despite having no relationship to the case. The complaint claims that Iza, through Zort and other businesses owned by his then-girlfriend, made payments to three LASD deputies, with amounts occasionally reaching close to $200,000. Another person interviewed by the FBI claimed that Iza and E.Z. broke into their home, with Iza impersonating an FBI agent and stealing a laptop containing crypto. Iza was charged with conspiracy against rights and tax assessment evasions, with allegations that he concealed tens of millions of dollars and did not report any income taxes between 2020 and 2022. Iza’s lawyer and the LASD did not immediately respond to requests for comment.