Former LA Deputy Faces 18 Months in Prison for Lying in Crypto Extortion Case

Former LA Deputy Sentenced in Crypto Extortion Case

A former deputy of the Los Angeles County Sheriff’s Department has been sentenced to 18 months in federal prison after admitting to misleading federal investigators regarding threats made by a cryptocurrency businessman. The incidents relate to a 2021 extortion case involving Adam Iza.

Details of the Case

Scott Allen Simpkins, who pleaded guilty on March 17 to one count of obstruction of justice, was also ordered to pay a $10,000 fine by U.S. District Judge Percy Anderson. Prosecutors revealed that Simpkins was present when Iza threatened a victim with live ammunition, demanding a payment of $25,000.

During the incident at Iza’s Bel Air residence, federal prosecutors stated that Iza displayed four to five live 9mm rounds while threatening the victim and only after this threat were Simpkins and a fellow former deputy, Christopher Michael Cadman, involved in escorting the victim off the property.

Involvement and Consequences

The U.S. Attorney’s Office indicated that both deputies were employed by a private security firm, Saavedra & Associates, during the incident. They reportedly received $1,400 each for their services that day, along with a percentage of the profits from a longer-term contract established with Iza.

Ongoing Legal Issues for Adam Iza

Adam Iza remains in federal custody following multiple guilty pleas, including a conviction related to a bitcoin-linked kidnapping conspiracy in Connecticut. Since September 2024, Iza has faced various legal challenges, having pleaded guilty in California to charges including conspiracy against rights, wire fraud, and tax evasion.

Moreover, in a separate Connecticut case, Iza has pleaded guilty to conspiracy to interfere with commerce through robbery, a charge that could result in a maximum prison sentence of 20 years. The case involves an attempted kidnapping related to individuals accused of stealing approximately 4,100 bitcoin.

Conclusion

The developments in this case underscore the serious intersection between law enforcement and cryptocurrency-related crimes as authorities continue to pursue justice against illegal activities in the blockchain space.