Diving into the murky world of cryptocurrency fraud, we find Iris Ramaya Au, the 35-year-old ex-girlfriend of a notorious scammer known in the crypto circuit as “The Godfather.” Au has recently conceded to a federal charge for tax evasion, knowingly understating her income by over $2.6 million. This significant yet unchecked revenue stream emerged from her complicity in her former lover’s unlawful crypto operations, as stated by the U.S. Department of Justice (DOJ). The felony tax charge plea signifies another milestone in the government’s rigorous pursuit of individuals profiteering from illicit cryptocurrency transactions.
Exposing the Crypto Fraud: Role, Financial Involvement, and Extravagance
As reported by authorities, Au’s ex-lover, known pseudonymously as “Iza,” perpetrated a series of scams from 2020 through 2024. These involved unauthorized intrusions into advertising accounts and significant social media companies’ credit lines, generating millions in undeclared income. Au’s participation in these fraudulent schemes was not merely as a silent beneficiary but as a skilled financial manipulator. She allegedly structured shell corporations and opened various bank accounts to manage the overwhelming influx of funds.
The government’s allegations suggest that the purpose of these accounts was to pay off police officers for private security, sustain lavish lifestyles, and gather high-priced assets such as real estate, luxury autos, and of course, hefty amounts of cryptocurrency. Over time, Au shifted more than $2.6 million into her personal accounts. Moreover, the prosecutors documented that this unreported revenue financed recreational activities worth close to $10 million and crypto investments estimated at $16 million.
Nevertheless, despite being a recipient of these massive sums, Au neglected to report the earnings in her federal tax returns. The Internal Revenue Service (IRS) affirms that this oversight was not inadvertent, resulting in the federal tax charge that Au has now committed to pleading guilty.
Legal Entanglements of Iza and Continuing Investigations
Au’s guilty plea is an echo of Iza’s earlier concession, who is currently facing multiple accusations, including conspiracy against rights, wire fraud, and tax dodging. Iza’s destiny will be revealed at his sentencing hearing later this year, where he could potentially face a 35-year prison sentence. On the other hand, Au’s plea bargain might result in a three-year federal incarceration.
The DOJ also conveyed that the investigation into the overarching scheme continues with the active participation of the IRS and the FBI. The Justice Department reiterated its determination to prosecute any individual who fails to disclose income from illicit sources, irrespective of the methods of accumulation or expenditure.
Frequently Asked Questions
What are the accusations against Iris Ramaya Au?
Au is accused of failing to report more than $2.6 million in earnings received through her involvement in her former partner’s illegal crypto operations. She has admitted to a federal tax charge.
What is the potential outcome of Au’s court proceedings?
Au’s plea bargain might result in a sentence of up to three years in federal prison for deliberately failing to report her illicit income to the IRS.
What were the illegal activities of her ex-boyfriend “Iza”?
“Iza” is accused of orchestrating a series of fraudulent schemes involving unauthorized access to advertising accounts and credit lines from major social media companies. The scams reportedly generated millions in unreported income.
What is the DOJ’s stance on such cases?
The DOJ emphasizes a relentless pursuit of individuals failing to report income derived from illegal operations, asserting that it will not hesitate to bring such individuals to book, irrespective of how the funds are acquired or expended.
