Two Albany men charged in fraud investigation that resulted in one of the largest-ever firearms seizures in the history of the Northern District of New York

Date: August 22, 2025

Contact: newsroom@ci.irs.gov

ALBANY, NEW YORK – Iziah Cox and Kaya Cox, both of Albany, were arrested on Tuesday for conspiracy to make false statements to financial institutions as part of Operation Tidal Wave, which included court-authorized searches of more than 15 locations and resulted in the seizure of 134 firearms. Iziah Cox was subsequently charged with unlawfully possessing a firearm as a felon.

Acting United States Attorney John A. Sarcone III and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office for the Federal Bureau of Investigation (FBI), made the announcement.

The conspiracy complaint alleges that in the spring of 2025, brothers Iziah Cox and Kaya Cox participated in a scheme to make false statements to numerous banks in the Capital Region and elsewhere by operating an elaborate network of dozens of New York State business entities and Albany County “Doing Business As” (DBA) business entities, misappropriating the names of real companies with which the conspirators had no relationship. These trade names were then used to open numerous bank accounts in the Capital Region and elsewhere that served to collect incoming wire transfers and checks resulting from numerous domestic and international scams targeting legitimate companies.

In connection with the execution of court-authorized search and seizure warrants in the fraud investigation, investigators recovered 134 firearms from two residences in Albany and Troy, as well as storage units in Menands. According to a complaint filed yesterday in which Iziah Cox was charged with unlawful possession of a firearm as a felon, many of these guns were hidden inside stereo equipment.

The charges in the complaints are merely accusations. The defendants are presumed innocent unless and until proven guilty.

Acting United States Attorney John A. Sarcone III said: “This is one of the largest firearms seizures, if not the largest firearms seizure, in the history of the Northern District of New York. The number of firearms is significant, but more important are the many lives saved as a result of Operation Tidal Wave now that these guns cannot be used to kill and maim people. Albany and Troy are much safer today than they were last week. This is what happens when federal, state and local law enforcement work together, which has been one of my top priorities since taking office five months ago.”

FBI Special Agent in Charge Craig L. Tremaroli said, “This seizure, one of the largest ever recorded in our district, is the direct result of the tremendous partnerships displayed throughout Operation Tidal Wave. These guns will never make it into the hands of dangerous criminals looking to wreak havoc in our communities. The FBI is grateful to our partners for standing shoulder to shoulder with us in our shared goal of keeping our communities safe.”

The conspiracy charges filed against both defendants carry a maximum term of 5 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. The firearm charge against Iziah Cox carries a maximum term of 15 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statutes the defendant is convicted of violating, the U.S. Sentencing Guidelines and other factors.

Both defendants appeared in federal court in Albany earlier this week and were ordered detained pending trial by United States Magistrate Judge Paul J. Evangelista.

Albany Police Chief Brendan Cox said, “Operation Tidal Wave represents our ongoing efforts to reduce gun violence. By seizing this large amount of illegal firearms, we have directly prevented these weapons from being used to harm our community. Each firearm removed from our streets is one less threat to our neighborhoods. The Albany Police Department is grateful for our partnerships we have with our federal, state and local agencies. Together, we are committed to protecting the public and holding offenders accountable.”

Troy Police Chief Daniel DeWolf stated: “I’m thrilled and proud we took this many guns off the street, and also of the collaboration that led to these historic seizures. We are all working together to achieve our collective mission of reducing violent crime.”

The FBI and its Albany Regional Financial Crimes Taskforce is investigating the cases, with assistance from Internal Revenue Service-Criminal Investigation, the United States Postal Inspection Service, the New York State Comptroller’s Office, the Albany County Sheriff’s Office, the Albany Police Department, the Troy Police Department, the New York State Police, and the Capital Region Crime Analysis Center and the New York State Intelligence Center. Assistant U.S. Attorneys Joshua R. Rosenthal, Matthew M. Paulbeck, and Benjamin S. Clark are prosecuting the cases.

IRS Criminal Investigation (IRS-CI) is the law enforcement arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money laundering, public corruption, healthcare fraud, identity theft and more. IRS-CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, obtaining a 90% federal conviction rate. The agency has 19 field offices located across the U.S. and 14 attaché posts abroad.