Former LA Deputy Sentenced for Lying in Adam Iza Crypto Extortion Case
March 2025 — A former Los Angeles County Sheriff’s Department deputy has been sentenced to 18 months in federal prison after admitting he lied to federal investigators about threats made by cryptocurrency businessman Adam Iza during a 2021 extortion incident. The case highlights the intersection of cryptocurrency, private security, and criminal justice.
Immediate Details & Direct Quotes
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Scott Allen Simpkins, a former deputy with the LASD Special Enforcement Bureau, pleaded guilty on March 17 to one count of obstruction of justice. U.S. District Judge Percy Anderson also imposed a $10,000 fine on Simpkins, who resigned from the department after entering his felony plea.
According to the U.S. Attorney’s Office for the Central District of California, Simpkins falsely denied witnessing Iza threaten a victim with live ammunition during an incident at Iza’s Bel Air home in 2021. Court records indicate Simpkins was working private security at the residence alongside fellow former LASD deputy Christopher Michael Cadman. Both men were employed by Saavedra & Associates, a private security company owned by then-LASD Deputy Eric Chase Saavedra.
Prosecutors said Iza placed four or five live 9mm rounds on his desk, spun one of the bullets while threatening the victim, and demanded a $25,000 transfer before Simpkins and Cadman escorted the victim off the property. The two deputies received $1,400 each for their work that day.
Market Context & Reaction
The U.S. Attorney’s Office said that after helping Saavedra & Associates secure a longer-term security contract with Iza, the company paid Simpkins and Cadman approximately 10% of its profits from the contract’s first month. Market reaction details regarding the cryptocurrency sector were not immediately available from the court documents.
Iza remains in federal custody since September 2024 after pleading guilty in California in January 2025 to conspiracy against rights, wire fraud, and tax evasion. He has not yet been sentenced in that case. In a separate prosecution, the U.S. Department of Justice announced in June that Iza also pleaded guilty in federal court in Connecticut to conspiracy to interfere with commerce by robbery, which carries a maximum prison sentence of 20 years.
Background & Historical Context
According to the Justice Department, the Connecticut case involved a 2024 kidnapping plot targeting the parents of Veer Chetal, a man accused of participating in the theft of approximately 4,100 bitcoin. Prosecutors said Iza and his brother, Saif Faiq, organized the scheme in an attempt to extort cryptocurrency.
Faiq pleaded guilty on June 9, admitting he recruited six men from Florida, arranged their travel to Connecticut, and coordinated surveillance before the attack in Danbury. The group allegedly forced Sushil and Radhika Chetal from their vehicle after staging a collision, assaulted them, and briefly held them captive. The six alleged attackers later pleaded guilty to kidnapping and carjacking offenses.
Federal records show Veer Chetal separately pleaded guilty in November 2025 to charges connected to the theft of approximately 4,100 bitcoin and is awaiting sentencing.
What This Means
The sentencing of Simpkins sends a clear signal about the consequences of obstructing federal investigations, particularly those involving cryptocurrency-related crimes. The case demonstrates how law enforcement officers who cross legal boundaries face significant penalties, including prison time and fines.
For the cryptocurrency community, this case underscores the importance of transparency and lawful conduct in digital asset transactions. Iza’s pending sentencing in both California and Connecticut will likely result in substantial prison time, given the severity of charges including wire fraud, tax evasion, and conspiracy to commit robbery.
The broader implications suggest continued federal scrutiny of cryptocurrency-related extortion and kidnapping schemes, with prosecutors aggressively pursuing both perpetrators and those who attempt to cover up such crimes.
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