Her Crypto ‘Godfather’ Ex Moved Millions. She Hid $2.6M From the IRS

The Money That Reached Her Accounts

Prosecutors said that much than $2.6 cardinal flowed from institution accounts into Iris Rabaya Au’s idiosyncratic slope accounts betwixt 2020 and 2023. The Irvine pistillate failed to study that income connected her national taxation returns, according to the Justice Department’s Sept. 21 sentencing announcement. Au, 37, received 18 months successful national situation aft pleading blameworthy successful March 2025 to filing a mendacious taxation return.

U.S. District Judge Percy Anderson besides ordered Au to wage $1,484,343 successful restitution and forfeit luxury and high-performance cars, decorator handbags, and 3 “Godfather” sculptures, among different assets. The nickname belonged to her erstwhile boyfriend, Adam Iza, who utilized it portion presenting himself arsenic a cryptocurrency businessman. Au’s condemnation pertained to the income she omitted from her returns.

Prosecutors described her relation arsenic portion of the fiscal cognition down Iza’s spending. In a sentencing memorandum, they argued:

“[Au] acceptable up the fiscal infrastructure that enabled Adam Iza to move, spend, and conceal millions of dollars successful fraud proceeds portion she personally benefited from the wealth.”

Shell Companies, Deputies and $16 Million successful Crypto

At Iza’s direction, Au created ammunition corporations and opened slope accounts successful their names, according to her plea agreement. She past utilized funds deposited successful those accounts to wage astir $1 cardinal to Los Angeles County sheriff’s deputies, mostly successful cash. The wealth besides covered luxury property, vehicles, jewelry, clothing, and astir $10 cardinal successful recreational spending for the couple.

Au utilized the accounts to get astir $16 cardinal successful cryptocurrency for Iza, giving him digital assets helium could hold, speech oregon transfer. The Justice Department described the $16 cardinal arsenic purchases made for Iza done Au’s companies.

That acquisition was abstracted from the much than $2.6 cardinal she transferred into her idiosyncratic accounts and failed to report. The IRS lists unreported income and mendacious taxation documents among the taxation violations that tin beryllium reported to the agency.

The deputies provided Iza with backstage security, but the misconduct extended beyond that work. Prosecutors said deputies obtained confidential instrumentality enforcement accusation and court-authorized hunt warrants targeting radical progressive successful Iza’s fiscal oregon idiosyncratic disputes. Iza’s arrest successful September 2024 brought nationalist attraction to the investigation.

In a connected case, erstwhile lawman David Anthony Rodriguez received a one-year situation condemnation aft admitting helium utilized a mendacious warrant exertion to get a man’s compartment telephone determination for a backstage client. His later situation sentence exposed however constabulary powers were misused.

Iza Faces Sentencing successful a Separate California Case

Iza fraudulently obtained entree to Meta advertizing accounts and associated recognition lines, past sold entree to them, according to the Justice Department. He pleaded blameworthy successful January 2025 to conspiracy against rights, ligament fraud, and taxation evasion successful national tribunal successful Los Angeles. His sentencing successful that lawsuit is scheduled for Oct. 5.

A abstracted lawsuit arose from an attempted bitcoin robbery and kidnapping successful Connecticut successful August 2024. Authorities said Iza helped program and money a strategy targeting the parents of a idiosyncratic progressive successful a ample bitcoin theft. The parents were kidnapped aft a convulsive carjacking.

A Connecticut national justice sentenced Iza to 15 years successful situation connected Sept. 9 for his engagement successful that plot. The condemnation precedes the still-pending sentencing successful his California case.