A California woman has been sentenced to 18 months in federal prison for concealing more than $2.6 million in unreported income from illegal activities, underscoring how cryptocurrency-related financial crimes carry serious tax and legal consequences.
Iris Au, 37, of Irvine, pleaded guilty in March 2025 to filing false tax returns. According to the U.S. Department of Justice, Au helped Adam Iza, who described himself as a "cryptocurrency businessman" and "The Godfather," establish systems to transfer funds from illegal activities while failing to report millions of dollars deposited into her accounts.
U.S. District Judge Percy Anderson ordered Au to pay $1.48 million in restitution and forfeit luxury vehicles, designer handbags, sculptures, and other assets acquired through the scheme.
How the Money Moved
Between 2020 and 2023, Au transferred $2.6 million to her personal bank accounts without reporting the income on tax returns. Prosecutors alleged she used approximately $16 million in illicit funds to purchase cryptocurrency for Iza.
Au played a central role in moving Iza's money by creating shell companies and opening bank accounts in their names at his direction. About $1 million in cash was paid to active Los Angeles County Sheriff's Department deputies hired as private security. The remaining funds were used for real estate, vehicles, jewelry, clothing, and approximately $10 million in personal expenses.
In a sentencing memorandum, prosecutors stated: "Au concealed entities and income from her tax preparer and filed returns reporting only a small fraction of what she had actually received. Those were affirmative acts designed to prevent the IRS from learning the true extent of her income."
Related Case
Iza, 26, has been in federal custody since September 2024. He pleaded guilty to conspiracy against rights, wire fraud, and tax evasion in January 2025 and faces sentencing on October 5. He is also serving a 15-year sentence imposed in Connecticut for his role in planning a Bitcoin robbery and abduction attempt in Danbury in August 2024.
The case was investigated by IRS Criminal Investigation and the FBI.
