A former Los Angeles County Sheriff’s Department deputy has been sentenced to 18 months in federal prison after admitting he lied to investigators during a federal probe involving cryptocurrency businessman Adam Iza. The case centers on a 2021 extortion incident in which prosecutors say Iza threatened a victim before demanding a $25,000 payment.
The sentencing marks another development in a series of criminal cases linked to Iza, who remains in federal custody while awaiting sentencing on multiple charges.
Former deputy receives prison sentence
The U.S. Attorney’s Office for the Central District of California announced that Scott Allen Simpkins, a former deputy with the Los Angeles County Sheriff’s Department, was sentenced to 18 months in prison and ordered to pay a $10,000 fine.
Simpkins pleaded guilty in March 2026 to one count of obstruction of justice after admitting he lied to federal investigators about what he witnessed during the 2021 incident.
Following his guilty plea, Simpkins resigned from the department’s Special Enforcement Bureau.
Prosecutors detail the 2021 extortion incident
According to court records, Simpkins was working as a private security contractor at Adam Iza’s Bel Air residence alongside former deputy Christopher Michael Cadman. Both men were employed by Saavedra & Associates, a private security firm owned by former LASD deputy Eric Chase Saavedra.
Federal prosecutors alleged that Iza placed several 9mm live rounds on his desk, spun one of the bullets while threatening a victim, and demanded a $25,000 payment before Simpkins and Cadman escorted the victim off the property.
Investigators said Simpkins later falsely denied witnessing the threats when questioned by federal authorities.
Security team reportedly received additional payments
According to prosecutors, Simpkins and Cadman were each paid $1,400 for providing security services during the incident.
Authorities also said that after Saavedra & Associates secured a longer-term security contract with Iza, both deputies received an additional payment equal to roughly 10% of the company’s first-month profits from the contract.
These financial arrangements became part of the broader federal investigation into the case.
Adam Iza remains in federal custody
While Simpkins has now been sentenced, legal proceedings against Adam Iza are still ongoing.
Federal prosecutors said Iza has remained in custody since September 2024 after pleading guilty in California to charges including:
- Conspiracy against rights
- Wire fraud
- Tax evasion
He has not yet been sentenced in that case.
Separate Bitcoin-linked kidnapping case
Iza also faces separate federal charges connected to a cryptocurrency-related kidnapping conspiracy in Connecticut.
According to the U.S. Department of Justice, Iza pleaded guilty to conspiracy to interfere with commerce by robbery, a charge carrying a maximum prison sentence of 20 years.
Prosecutors allege the conspiracy targeted the parents of Veer Chetal, who was accused of participating in the theft of approximately 4,100 Bitcoin.
Authorities said Iza and his brother, Saif Faiq, organized the kidnapping scheme in an attempt to extort cryptocurrency from the family.
Court records state that Faiq recruited several individuals, arranged their travel to Connecticut, and coordinated surveillance before the attack. Prosecutors said the victims were forced from their vehicle after a staged collision, assaulted, and briefly held captive.
The individuals involved later pleaded guilty to kidnapping and carjacking charges.
Multiple legal cases continue
The growing number of criminal cases linked to Adam Iza highlights increasing law enforcement scrutiny of crimes involving digital assets.
Although cryptocurrency itself was not the cause of the offenses, prosecutors allege it was used as the motive behind extortion, fraud, and kidnapping schemes spanning multiple states.
With Iza still awaiting sentencing in both federal cases, authorities continue to pursue accountability for everyone involved in the investigations.
