A federal investigation in Los Angeles is uncovering a complex web of corruption involving law enforcement officers accused of extorting cryptocurrency entrepreneurs, highlighting the challenging intersection of digital finance and official misconduct. This ongoing probe details how law enforcement personnel allegedly leveraged their authority for illicit personal gain, creating a climate of intimidation and undermining public trust.
- A federal investigation in Los Angeles targets law enforcement officers for extorting cryptocurrency entrepreneurs.
- Adam Iza, founder of the cryptocurrency firm Zort, pleaded guilty to conspiracy against civil rights, fraud, and tax evasion.
- Deputy Christopher Cadman admitted to intimidation tactics, illegal stops, and received at least $40,500 in illicit, undeclared payments.
- Deputy David Rodriguez and Officer Eric Saavedra pleaded guilty to charges involving fabricated search warrants and unauthorized surveillance.
- Prosecutors indicate the corruption may be extensive, with evidence of multi-million dollar transfers from Zort to police-linked accounts.
Core Allegations and Key Figures
Central to this investigation is Adam Iza, founder of the cryptocurrency firm Zort, who has pleaded guilty to conspiracy against civil rights, fraud, and tax evasion. Iza admitted to paying tens of thousands of dollars to law enforcement officers for various illicit services. These services reportedly included armed intimidation targeting his business rivals and orchestrating staged arrests, all designed to further his fraudulent enterprises.
One of the key figures implicated is Deputy Christopher Cadman, who has pleaded guilty to conspiracy in connection with Iza. Cadman’s admissions include details of intimidating victims, holding an individual at gunpoint at a residence, and conducting an illegal traffic stop. For these services, Cadman received at least $40,500 in payments, which were not declared in his tax filings, adding a dimension of tax fraud to the charges.
Further deepening the scandal, Deputy David Rodriguez admitted to obtaining a fabricated search warrant. This warrant was reportedly used for surveillance on an individual at the behest of a private client, with GPS data then shared with accomplices for purposes of pursuit and intimidation. Officer Eric Saavedra also pleaded guilty to conspiracy and submitting a false tax declaration, having been linked to Rodriguez in these unauthorized surveillance activities.
Expanding Scope and Ongoing Legal Proceedings
Prosecutors indicate that the scale of corruption may extend beyond the confines of this particular case. Evidence includes multi-million dollar transfers from Zort to accounts associated with police officers. Additionally, a former associate of Iza’s admitted to receiving $2.6 million in undeclared income stemming from his operations, suggesting a broader scheme of financial impropriety. The investigation remains active, with authorities not ruling out additional arrests as they continue to uncover the full extent of the misconduct.
As the legal proceedings continue, Rodriguez faces a potential sentence of up to 10 years in prison, while Cadman awaits his sentencing. Saavedra has been released on bail, reflecting the ongoing nature and complexity of the federal inquiry into these allegations of public corruption.
Former Wall Street analyst turned crypto journalist, Marcus brings a decade of expertise in trading strategies, risk management, and quantitative research. He writes clear, actionable guides on technical indicators, portfolio diversification, and emerging DeFi projects.