L.A. County sheriff’s deputy pleads guilty to obstructing federal probe into crypto threats

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Bilal A. Essayli, U.S. Attorney's Office for the Central District of California | Department of Justice

L.A. County sheriff’s deputy pleads guilty to obstructing federal probe into crypto threats

A Los Angeles County Sheriff’s Department deputy pleaded guilty on Mar. 17 to obstructing a federal investigation by lying about witnessing threats and extortion by a self-styled cryptocurrency businessman at a Bel Air mansion.

The case highlights the intersection of law enforcement misconduct and criminal activity involving digital currency, raising concerns about public trust and accountability in police ranks.

Scott Allen Simpkins, 34, admitted to one count of obstruction of justice after he lied to federal agents about not seeing ammunition or financial transactions during an incident where Adam Iza, known as “The Godfather,” threatened a party planner for $25,000. Simpkins was working private security for Iza at the time, alongside other deputies employed through Saavedra & Associates—a company run by then-deputy Eric Chase Saavedra that provided private security using active law enforcement officers.

According to court documents, Simpkins and fellow deputy Christopher Michael Cadman escorted the victim into Iza’s office, where Iza placed live ammunition on his desk and demanded money. After the transfer occurred, Simpkins and Cadman escorted the victim out. Both deputies received payments for their roles in these events and were later rewarded with a share of profits from Saavedra & Associates’ contract with Iza.

Following Iza’s arrest in September 2024 on multiple charges including conspiracy against rights and wire fraud, Simpkins lied during a November meeting with federal investigators despite being warned that dishonesty could lead to prosecution. He has since been relieved of duty but remains with the department pending further action. United States District Judge Percy Anderson scheduled sentencing for July 13; Simpkins faces up to ten years in prison.

Other individuals involved—including Iza, Saavedra, and Cadman—have also pleaded guilty and await sentencing. Former deputy Michael David Coberg was recently sentenced to over five years in prison for related crimes involving extortion and false arrests.

The FBI and IRS Criminal Investigation are leading the inquiry with assistance from the Los Angeles County Sheriff’s Department. Assistant United States Attorney Maxwell K. Coll is prosecuting the case.

The U.S. Attorney's Office for the Central District of California supports community outreach through programs focused on victim assistance and public education according to its official website. The office serves more than 19 million residents across seven counties according to its official website and focuses on prosecuting federal criminal cases as well as handling civil matters for the government according to its official website. E. Martin Estrada has held the position of United States Attorney for this district according to its official website. The office works closely with federal, state, and local law enforcement partners to ensure public safety according to its official website.