Iris Au sentenced to 18 months and ordered to repay $1.48 million in ‘godfather’ crypto fraud case

A federal judge sentenced Iris Ramaya Au, 37, of Irvine, to 18 months in prison and $1.48 million in restitution on Monday, Sept. 21, 2026, after she pleaded guilty to filing a false tax return on income tied to her former boyfriend Adam Iza’s crypto fraud scheme.

U.S. District Judge Percy Anderson imposed the prison sentence and ordered Au to pay $1.48 million in restitution. The court also ordered the forfeiture of luxury and high-performance vehicles, designer handbags, three sculptures and other assets.

Au pleaded guilty in March 2025 in Los Angeles federal court to submitting a false tax return. According to her plea agreement, she transferred more than $2.6 million from accounts connected to shell companies into her personal bank accounts between 2020 and 2023 without reporting the income on her federal tax returns.

The case connects Au directly to the financial activity surrounding Iza, a former Beverly Hills and Newport Beach resident who prosecutors say carried out a series of offenses between 2020 and 2024.

Crypto fraud scheme involved advertising accounts and credit lines

According to the plea agreement, Iza fraudulently obtained access to advertising accounts and lines of credit provided by Facebook Inc. and Meta Platforms Inc. He then sold access to those accounts, generating millions of dollars in income that was not reported to tax authorities.

The case illustrates how the alleged crypto fraud operation extended beyond cryptocurrency transactions into financial accounts, corporate structures and other assets.

At Iza’s direction, Au created shell corporations and opened bank accounts in the names of those entities, according to court papers. Funds connected to the scheme were subsequently moved through those accounts and used for a range of expenses and purchases.

The source story describes Iza as a cryptocurrency figure who called himself “the godfather.” His criminal case includes allegations involving financial fraud and tax offenses, while a separate Connecticut case resulted in a 15-year prison sentence related to an attempted Bitcoin robbery and kidnapping.

Au’s involvement centered on handling money connected to the broader scheme and failing to disclose income to the federal government.

Crypto fraud proceeds funded luxury spending

Court records cited in the case show that money passing through the shell-company accounts was used for significant personal and other expenditures.

About $1 million was paid to former Los Angeles County sheriff’s deputies whom Iza had corrupted, according to court papers. The funds were also used to purchase or lease luxury real estate, cars, jewelry and clothing.

The U.S. Attorney’s Office said nearly $10 million was spent on recreational activities for Iza and Au. Another $16 million in cryptocurrency was acquired for Iza, according to the office.

The spending provides an important part of the financial picture surrounding the crypto fraud case, which prosecutors have linked to a network of transactions extending well beyond the original advertising-account scheme.

Au acknowledged in her plea agreement that she transferred more than $2.6 million from the various accounts to her own bank accounts between 2020 and 2023. She also admitted that the income was not reported on her federal tax returns.

Her guilty plea established her responsibility for the tax offense for which she was sentenced, while the broader allegations against Iza are being addressed separately in his federal criminal case.

Crypto fraud investigation continues with Iza’s sentencing ahead

Iza, 26, pleaded guilty in January 2025 to federal conspiracy, wire fraud and tax evasion charges. His sentencing in downtown Los Angeles is expected next month, according to the source report.

He is already serving a 15-year prison sentence stemming from his involvement in an attempted robbery of Bitcoin and a kidnapping in Connecticut in August 2024.

The separate proceedings involving Au and Iza show the different criminal consequences arising from the broader crypto fraud investigation. Au’s case focused on a false tax return and the handling of more than $2.6 million in unreported income, while Iza faces sentencing for conspiracy, wire fraud and tax evasion in federal court.

For Au, Monday’s sentence brings the tax-related prosecution to its sentencing stage, with the court also imposing financial restitution and forfeiture of assets. The restitution order totals $1.48 million.

The case also underscores the financial complexity surrounding crypto fraud investigations, where proceeds may move through corporate entities, bank accounts, cryptocurrency holdings and high-value purchases. In Au’s case, prosecutors tied the money she transferred to accounts associated with Iza’s activities between 2020 and 2023.

The sentencing is the latest court action stemming from the alleged crypto fraud operation and comes as authorities continue proceedings against Iza. His upcoming sentencing is expected to provide the next major development in the case.

The source story did not contain additional direct quotations from Au, Iza, prosecutors or the court. To preserve journalistic accuracy, no additional quotes have been created or attributed beyond the quoted nickname “the godfather” appearing in the original report.