Woman Sentenced in Multi-Million Dollar Crypto Fraud and Money Laundering Case
Iris Rabaya Au, a 37-year-old resident of Irvine, California, has been sentenced to 18 months in federal prison for her role in concealing more than $2.6 million in proceeds from cryptocurrency crimes. In addition to imprisonment, she was ordered to pay nearly $1.5 million in restitution and forfeit multiple luxury and high-performance vehicles, designer handbags, and three "Godfather" themed sculptures.
The Fraud Scheme and Money Flow
The mastermind behind the illicit gains was Au's former boyfriend, Adam Iza. Prosecutors revealed that between 2020 and 2024, Iza fraudulently obtained Meta advertising accounts and lines of credit, selling access to these accounts for millions in unreported income.
Au acted as a key facilitator. At Iza's direction, she established shell companies and bank accounts to receive and disperse the funds. The money was used to make payments totaling approximately $1 million to a Los Angeles County Sheriff's Department deputy, and to purchase or lease luxury homes, cars, jewelry, and high-end apparel. The couple's entertainment expenses neared $10 million, and Au also purchased around $16 million worth of cryptocurrency for Iza.
The Tax Filing Failure That Led to Conviction
Between 2020 and 2023, Au transferred over $2.6 million into her personal bank accounts. She failed to report this income on her federal tax returns filed with the IRS. This omission formed the basis of her criminal liability. In March 2025, she pleaded guilty to one count of making a false tax return.
This case underscores increasing scrutiny by tax authorities on cryptocurrency transactions. Failing to report income, even from illegal sources, can itself constitute a serious federal felony.
Primary Defendant Faces Separate Kidnapping Conviction
Adam Iza pleaded guilty in January 2025 to charges including conspiracy against rights, wire fraud, and tax evasion. His sentencing hearing is scheduled for October 5.
Iza's criminal activities extended beyond fraud. In August 2024, he was involved in an attempted Bitcoin robbery and kidnapping in Connecticut, for which he was separately sentenced to 15 years in federal prison. The two cases paint a picture of criminal enterprise spanning from digital fraud to physical violence.
Asset Forfeiture and Regulatory Implications
The sentencing demonstrates law enforcement's focus on not only the perpetrators of crypto crimes but also those who aid in laundering and hiding the proceeds. The forfeiture of luxury assets aims to strip criminals of the benefits of their illegal activity.
For the public, this case serves as a stark warning. Handling large sums of cryptocurrency from unclear sources, particularly involving concealment and false reporting, carries severe legal risks.