Adam Iza gets 78 months in prison for $37 million Meta fraud and tax evasion
Adam Iza sentenced to 78 months over Meta ad fraud
Adam Iza, 26, has been sentenced to 78 months in federal prison for defrauding Meta of more than $37 million, the U.S. Department of Justice said on Tuesday. The department also said he evaded taxes and used off-duty Los Angeles County sheriff's deputies to intimidate people he saw as rivals.
Iza has called himself "The Godfather." U.S. District Judge Percy Anderson also ordered him to pay $23.4 million in restitution.
His new sentence will run at the same time as a 15-year prison term he received last month in Connecticut for his role in an attempted bitcoin robbery in August 2024.
Key numbers from the case
- 78 months: the federal prison term handed down in the Meta fraud case.
- More than $37 million: the amount Iza was sentenced for defrauding Meta of.
- $36.4 million: the income prosecutors say he received from the scheme.
- $13.3 million: the estimated tax loss to the IRS, according to prosecutors.
- $23.4 million: restitution ordered by the judge.
- 15 years: the separate Connecticut sentence for the attempted bitcoin robbery.
What the Justice Department announced
The department said Iza was sentenced to 78 months and also found guilty of evading taxes and of using off-duty Los Angeles County sheriff's deputies to intimidate people he viewed as rivals.
Iza pleaded guilty in January 2025 to conspiracy against rights, wire fraud and one count of tax evasion.
At sentencing, prosecutors said: "Individuals with substantial financial resources must understand that they cannot purchase access to confidential databases, investigative tools, warrants, arrests, badges, or firearms for use in private disputes."
How prosecutors described the fraud
According to prosecutors, Iza got access to Meta Business Manager accounts and the credit lines linked to them, then sold that access to advertising companies. Meta, the parent company of Facebook, billed clients for ads they did not buy and then refunded them, prosecutors said.
Prosecutors said Iza received at least $36.4 million in income from the scheme, which they said caused an estimated $13.3 million tax loss to the IRS.
The department said Iza admitted moving corporate income tied to the fraud to crypto custodians. A crypto custodian is a service that holds digital assets for clients. Prosecutors said he did this while hiding his ownership of a company called Zort.
Between 2021 and 2022, prosecutors said, Iza hired off-duty deputies to obtain confidential law-enforcement information, personal data and search warrants to track and harass people he had disputes with. The five now former Los Angeles deputies involved have since been convicted, the department said.
What is confirmed
The Justice Department confirmed the 78-month sentence, the tax evasion and intimidation findings, the $23.4 million restitution order, and the January 2025 guilty plea to conspiracy against rights, wire fraud and tax evasion.
It also confirmed that the sentence runs at the same time as the 15-year Connecticut term for the attempted bitcoin robbery.
What is still unclear
The supplied material does not explain how the two sentences will be served in practice, where Iza is being held, or whether any appeal has been filed.
Why crypto businesses are watching this case
The case is an example of how crypto custodians can be part of wider fraud and tax-evasion schemes, according to the reporting. It also shows that a crypto-related prosecution can sit alongside charges that have nothing to do with digital assets, such as advertising fraud and corruption involving law enforcement.
Other crypto fraud sentences in recent weeks
CoinDesk reported that a Brooklyn man, Ronald Spektor, was sentenced to 12 years in prison last month over a scheme in which he impersonated Coinbase customer service representatives and deceived about 100 people into believing their accounts had been hacked.
Separately, Las Vegas businessman Brent Kovar was found guilty in August in a case described as a crypto supercomputer Ponzi scheme.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.