A former Los Angeles County Sheriff’s Department deputy has been sentenced to 18 months in federal prison and fined $10,000 for obstructing a federal investigation into a cryptocurrency businessman. Scott Allen Simpkins, 34, of Brea, was sentenced by United States District Judge Percy Anderson for lying to federal investigators about an incident in August 2021, where cryptocurrency businessman Adam Iza allegedly threatened a party planner at his Bel Air mansion and extorted $25,000. Simpkins pleaded guilty on March 17 to one count of obstruction of justice and resigned from the LASD’s Special Enforcement Bureau following his felony plea.
Key Highlights
- Former LASD deputy Scott Allen Simpkins sentenced to 18 months in federal prison.
- Convicted of obstructing a federal investigation into crypto mogul Adam Iza.
- Simpkins lied about witnessing Iza threaten and extort $25,000 in August 2021.
- Incident occurred at Iza’s Bel Air mansion where Simpkins was working private security.
- Simpkins also fined $10,000 and resigned from LASD’s Special Enforcement Bureau.
Deputy’s Betrayal of Trust
The Obstruction of Justice
Scott Allen Simpkins, a former deputy with the Los Angeles County Sheriff’s Department (LASD), will serve 18 months in federal prison and pay a $10,000 fine for obstructing a federal investigation. The investigation centered on Adam Iza, a self-styled cryptocurrency businessman who called himself “The Godfather” and has been in federal custody since September 2024. Simpkins’ obstruction occurred when he lied to federal investigators about witnessing Iza threaten a party planner at his Bel Air mansion in August 2021. During this incident, Iza allegedly placed four or five live 9mm rounds on his desk, twirled a bullet, and demanded a $25,000 transfer from the victim. Simpkins, who was working private security at Iza’s residence at the time along with fellow former LASD deputy Christopher Michael Cadman, falsely claimed he had not witnessed any firearms or financial transactions. This false account formed the basis of the obstruction of justice charge to which Simpkins pleaded guilty on March 17. He subsequently resigned from the LASD’s Special Enforcement Bureau after his felony plea.
Adam Iza’s Criminal Enterprise
Adam Iza, the central figure in the investigation, faces a multitude of federal charges. He pleaded guilty in January 2025 to conspiracy against rights, wire fraud, and tax evasion. The charges are reportedly linked to a $37 million phishing scheme that operated by hacking Meta business manager accounts, generating over $36 million in illicit proceeds through a platform called Zort between 2020 and 2022. In addition to the California charges, Iza also pleaded guilty in the District of Connecticut in July 2026 to conspiracy to interfere with commerce by robbery, stemming from an August 2024 attempted Bitcoin robbery and kidnapping in Danbury, Connecticut. He awaits sentencing in both cases. The case also highlights a broader pattern of misconduct, as other law enforcement figures have been implicated. Former LASD Deputy Michael David Coberg is already serving a 63-month federal prison sentence for aiding Iza’s extortion activities. Eric Chase Saavedra, the owner of Saavedra & Associates, the private security firm that employed Simpkins and Cadman, has also pleaded guilty to federal criminal charges and awaits sentencing.
Wider Implications for Law Enforcement and Crypto
The sentencing of Scott Allen Simpkins underscores the risks associated with off-duty or private security work undertaken by law enforcement officers. When deputies work for wealthy clients outside official channels, the boundaries between legitimate security, undue influence, and outright intimidation can become blurred, leading to legal exposure. This case is a stark reminder that obstruction of justice charges can extend to individuals who are not directly involved in the underlying criminal acts but who actively mislead investigators or shield suspects. For the cryptocurrency industry, this case adds to the reputational challenges surrounding individuals who present themselves as legitimate digital asset entrepreneurs while facing serious allegations of coercion and fraud. The FBI and IRS Criminal Investigation Division investigated this matter, with assistance from the Los Angeles County Sheriff’s Department.
FAQ: People Also Ask
Who is Adam Iza?
Adam Iza is a self-styled cryptocurrency businessman who referred to himself as “The Godfather.” He has pleaded guilty to multiple federal charges, including conspiracy against rights, wire fraud, and tax evasion in California, as well as conspiracy to interfere with commerce by robbery in Connecticut. He is currently in federal custody awaiting sentencing.
What was Scott Allen Simpkins’ role in the crime?
Scott Allen Simpkins, a former LASD deputy, was sentenced for obstructing a federal investigation. He lied to investigators about witnessing Adam Iza threaten and extort $25,000 from a party planner. Simpkins was working private security at Iza’s Bel Air mansion during the incident.
How much money was extorted?
Adam Iza allegedly extorted $25,000 from a party planner during the incident at his Bel Air mansion in August 2021.
What are the consequences for obstruction of justice?
Obstruction of justice is a serious federal offense. Scott Allen Simpkins was sentenced to 18 months in federal prison and fined $10,000 for this charge. Penalties can vary depending on the specifics of the case.
What other federal charges does Adam Iza face?
Adam Iza faces charges including conspiracy against rights, wire fraud, tax evasion, conspiracy to interfere with commerce by robbery, and alleged involvement in a kidnapping and Bitcoin heist. He has pleaded guilty to several of these charges and awaits sentencing.
