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- Crypto fraud schemes have led to millions in unreported earnings and bribery by law enforcement.
- Tax evasion case involved $2.6M in hidden income, leading to a guilty plea.
- Crypto-funded lifestyle included luxury properties, high-end cars, and $16M in digital assets.
Iris Ramaya Au, a 35-year-old woman from Irvine, California, recently pleaded guilty to filing a false tax return. However, she did not disclose the receipt of more than $2.6 million generated from the criminal activities of her ex-boyfriend, who is now a convicted cryptocurrency fraudster.
According to a recent report, the current acting chairman and chief executive of AU has admitted to the felony charge, being found guilty of tax evasion, and will be in the United States District Court, Los Angeles, in the next few days. Following this, there is the sentencing of a man who called himself the ‘Crypto Godfather’ and created a fake multi-million-dollar empire.
Between 2020 and 2024, Iza implemented a complex financial fraud scheme. First, he sought unauthorized access to Facebook and Meta advertising accounts and then resold them. He made millions of unrecorded sales revenue from his operations and proceeded to lead an extravagant life.
Iza also used his money to buy protection for some Los Angeles County Sheriff’s Department deputies and information from such persons. It is alleged that these officers helped him obtain warrants for arrests on those with whom he had business and personal enmity.
Crypto Crime Crackdown
Subsequent to these revelations by Iza, Au was able to lay down shell companies and open bank accounts in their names. The money deposited into these accounts was spent on paying deputies, mostly in cash, on properties, luxury cars, jewelries and apparels worth nearly a million of dollars. Also, $10 million were spent on different entertainment services for herself and Iza and purchased nearly $16 million worth of cryptocurrency for him.
Specifically, in the plea agreement, Au also admitted to moving more than $2.6 million from several accounts into her respective personal accounts from 2020 to 2023. She did not declare this in her federal tax returns to the IRS, and as a result, she incurred the necessary tax on it. For pleading guilty, Au could face a prison time of up to three years in federal prison.
On January 30, Iza appeared before a federal judge and entered a guilty plea for conspiring to violate rights, wire fraud, and tax fraud. His sentencing is scheduled for June 16th, and he could be sent to federal prison for up to 35 years. He has been in federal custody since September 2024.
