A former Los Angeles County sheriff’s deputy was sentenced to more than five years in prison Monday after conspiring with a cryptocurrency magnate to extort rivals and arrange a false arrest.
Abuse of Power
Michael David Coberg pleaded guilty last year to conspiracy to commit extortion and conspiracy against rights. U.S. District Judge Percy Anderson sentenced Coberg to 63 months in prison and three years of supervised release, stating that his actions represented “a profound abuse of governmental power.”
Coberg admitted to acting out of “greed” and taking full responsibility for his actions. His attorney requested a two-year prison term, arguing that Coberg had otherwise “led an exemplary life.”
A Sprawling Enterprise
Coberg was a private security guard and business partner for Adam Iza, a Southern California crypto mogul who referred to himself as “the Godfather.” Coberg received at least $20,000 monthly for his services. He is one of several former deputies who admitted involvement in Iza’s illegal enterprise.
In September 2021, Coberg conspired with Iza to lure a victim, identified as R.C., from Miami to Los Angeles and orchestrate a drug arrest. Coberg tipped off another deputy, leading to a search of R.C.’s car where psilocybin mushrooms and cocaine were found. Coberg then drove past the arrest scene while Iza watched and recorded the event.
The following month, Coberg and Iza conspired to extort at least $127,000 from a victim, identified as L.A., with whom Iza had a financial dispute. Coberg posed as an active-duty law enforcement officer during the scheme. Iza recorded a video of the victim transferring funds to an account he controlled, and later held the victim at gunpoint, demanding money from the victim’s business partner.
Coberg separated from the Los Angeles County Sheriff’s Department in September 2025. The department stated that Coberg’s actions were “reprehensible” and a “clear violation of our Department standards.”
Iza, who is already in federal custody facing charges of conspiracy against rights, wire fraud, and tax evasion, was also separately charged in Connecticut with conspiracy to commit kidnapping and conspiracy to interfere with commerce by robbery. Authorities state Iza built a criminal enterprise based on “fraudulent marketing and cryptocurrency schemes.”
Frequently Asked Questions
What charges did Michael David Coberg plead guilty to?
Michael David Coberg pleaded guilty to conspiracy to commit extortion and conspiracy against rights.
How much money did Coberg earn working with Adam Iza?
Coberg earned at least $20,000 per month working as a private security guard and business partner for Adam Iza.
What was Adam Iza’s role in the criminal activity?
Adam Iza ran a sprawling illegal enterprise and conspired with Coberg to extort rivals and arrange a false arrest. He also faces separate charges in Connecticut related to kidnapping and robbery.
As investigations into cryptocurrency-related crimes continue, what safeguards can be implemented to prevent similar abuses of power in the future?
