Former LA Sheriff’s Deputy Sentenced to 18 Months for Lying to FBI in Crypto Mogul Extortion Case
A former Los Angeles County Sheriff’s Department deputy was sentenced to 18 months in federal prison Monday after admitting he lied to investigators about witnessing cryptocurrency businessman Adam Iza threaten a victim and demand a $25,000 payment during a 2021 incident at a Bel Air mansion.
U.S. District Judge Percy Anderson imposed the sentence and a $10,000 fine after Simpkins pleaded guilty to obstruction of justice, according to a statement from the U.S. Attorney’s Office for the Central District of California. Simpkins resigned from the LASD Special Enforcement Bureau after entering his plea.
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Simpkins worked as a deputy assigned to the LASD Lakewood Station and later served with the department’s Special Enforcement Bureau and SWAT team. He also provided private security services through Saavedra & Associates, a company owned by then-LASD Deputy Eric Chase Saavedra that employed active law enforcement personnel for private security contracts.
Details of the 2021 Extortion Incident
Prosecutors said Simpkins was among several law enforcement officers hired to provide security at Iza’s Bel Air residence during a private party in August 2021. After the party, a party planner identified in court documents as R.C. was removed from the event following allegations of disruptive behavior.
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The following day, Simpkins and former deputy Christopher Michael Cadman escorted R.C. into Iza’s office at his residence. Federal authorities alleged that Iza attempted to intimidate R.C. by placing several live 9mm rounds on his desk during the meeting. Prosecutors stated that Iza later demanded a $25,000 transfer from R.C.’s bank account to an account controlled by him.
According to court documents, Simpkins and Cadman escorted R.C. from the property after the payment was completed. Both deputies later benefited financially after helping Saavedra & Associates secure a continued security agreement with Iza. Simpkins and Cadman each received approximately $1,400 for their work during the party and the August 16 incident, and about 10% of the company’s first-month profits from the security contract.
Broader Federal Investigation into Adam Iza
The case is part of broader federal investigations involving Adam Iza, who referred to himself as a cryptocurrency businessman and used the nickname “The Godfather.” Iza has remained in federal custody since September 2024 after authorities arrested him over several alleged crimes.
In January 2025, Iza pleaded guilty to conspiracy against rights, wire fraud, and tax evasion charges in California. He is awaiting sentencing in that case. Additionally, Iza pleaded guilty in June 2026 in the District of Connecticut to conspiracy to interfere with commerce by robbery. That charge relates to an alleged Bitcoin-linked kidnapping and robbery plot in Danbury, Connecticut, in August 2024.
Federal prosecutors said the Connecticut case involved an attempted effort to obtain cryptocurrency connected to a dispute involving stolen Bitcoin.
The investigation has also led to guilty pleas from other individuals, including former law enforcement officers. Former LASD deputy Michael David Coberg is serving a 63-month federal prison sentence after pleading guilty to helping Iza extort an individual and arrange a fraudulent arrest operation. He was also ordered to pay $127,000 in restitution.
The FBI and IRS Criminal Investigation led the investigation into the case, while the Los Angeles County Sheriff’s Department assisted federal authorities throughout the proceedings.
Frequently Asked Questions
What was Scott Simpkins convicted of?
Scott Simpkins pleaded guilty to obstruction of justice for lying to federal investigators about witnessing Adam Iza demand a $25,000 extortion payment during a 2021 incident at a Bel Air mansion.
Who is Adam Iza?
Adam Iza is a cryptocurrency businessman who called himself ‘The Godfather’ and faces multiple federal cases involving fraud, robbery, and crypto-related crimes. He has pleaded guilty to conspiracy against rights, wire fraud, and tax evasion.
What role did other former deputies play in this case?
Former LASD deputy Michael David Coberg is serving a 63-month sentence for helping Iza extort an individual and arrange a fraudulent arrest operation. Simpkins and another deputy also received payments for security work related to Iza.
