Iris Ramaya Au, a 37-year-old Irvine woman, was sentenced Monday to 18 months in federal prison after admitting that she failed to report more than $2.6 million in income linked to her former boyfriend’s criminal activities. The case shows how cryptocurrency-related offenses can create tax and financial consequences beyond transactions recorded on a blockchain.
Tax Charges Follow Crypto-Linked Funds
Au pleaded guilty in March 2025 to subscribing to a false tax return. Federal prosecutors said she transferred more than $2.6 million from accounts connected to her former boyfriend, Adam Iza, into her personal bank accounts between 2020 and 2023.
Iza, who called himself a cryptocurrency businessman, pleaded guilty to federal charges involving conspiracy, wire fraud and tax evasion. Prosecutors said his broader activities generated millions of dollars in illicit income.
At Iza’s direction, Au created shell corporations and opened bank accounts in their names. Authorities said the accounts handled funds connected to his criminal activities.
Luxury Spending and Crypto Purchases
According to court records, money from the accounts funded luxury real estate, cars, jewelry and clothing. The funds also supported nearly $10 million in recreational spending involving Iza and Au.
Authorities said approximately $1 million went to Los Angeles County sheriff’s deputies who provided private security for Iza. Another $16 million was used to acquire cryptocurrency for him.
Au’s own tax offense centered on the more than $2.6 million she moved into personal accounts without reporting the income to the Internal Revenue Service.
Financial Penalties Add to Prison Term
Along with the 18-month sentence, a federal judge ordered Au to pay about $1.48 million in restitution and forfeit luxury vehicles, designer handbags and other assets. The sentence follows a broader federal investigation into Iza and people connected to his operations.
The case also underscores the financial reach of federal enforcement in cryptocurrency-related investigations. Authorities can pursue tax violations and asset recovery even when illicit proceeds move through corporate accounts, bank transfers and digital assets.
