TLDR
- Michael Coberg, ex-LA Sheriff’s deputy, received a 63-month prison sentence
- He received monthly payments of $20,000 to serve as security for cryptocurrency executive Adam Iza
- Adam Iza, self-styled “Crypto Godfather,” coerced a victim into transferring $127,000 using firearms
- Coberg orchestrated a fraudulent drug arrest targeting another victim flown in from Miami
- Adam Iza entered a guilty plea and awaits his sentencing hearing
A former law enforcement officer with the Los Angeles County Sheriff’s Department has been incarcerated for exploiting his official position to assist a cryptocurrency business owner in extorting competitors and fabricating criminal charges.
On Monday, Michael Coberg, age 44, received a federal prison sentence of 63 months. The court additionally mandated restitution payments totaling $127,000.
Coberg entered a guilty plea in September to charges of conspiracy to commit extortion and conspiracy against constitutional rights.
According to federal prosecutors, Coberg collected monthly payments of no less than $20,000 for serving as a private security contractor for Adam Iza, who founded the cryptocurrency trading platform Zort and branded himself the “Crypto Godfather.”
Iza has remained in federal detention since September 2024.
The Extortion Scheme
During October 2021, Coberg participated in apprehending an individual — referred to in court documents as “L.A.” — whose business associate was embroiled in a financial conflict with Iza.
Coberg transported this individual to Iza’s residence, where Iza filmed the victim executing a $127,000 transfer to his bank account while Coberg provided armed surveillance. The victim’s passport was confiscated prior to release.
On another occasion, Coberg accompanied Iza in taking the victim to a firearms facility. Federal prosecutors stated that Iza brandished a weapon at the individual and demanded monetary transfers.
In an unrelated incident, a victim designated as “R.C.” had previously been held at gunpoint by Iza alongside two additional deputies and compelled to transfer $25,000.
Coberg and accomplices subsequently coordinated with R.C.’s former romantic partner to make contact and persuade R.C. to travel from Miami to Los Angeles based on fabricated circumstances.
The Staged Arrest
Following R.C.’s arrival, they were instructed to acquire narcotics. Coberg alerted a colleague in the department, who conducted a traffic stop on R.C. and executed the arrest.
Federal prosecutors characterized this operation as a fabricated drug enforcement action engineered to punish Iza’s competitor.
Christopher Cadman, another former deputy, had previously entered a guilty plea in August for his participation in assisting Iza.
Prosecutors wrote in their sentencing memo that Coberg “betrayed that oath and those he swore to protect, abusing the awesome power of his badge. And he did so for an all-too-common reason: greed.”
Law enforcement officials have indicated that Iza operated a more extensive criminal network that recruited off-duty police officers.
Prosecutors claimed the organization engaged in a conspiracy that included plans to misappropriate as much as $100 million in cryptocurrency holdings.
Adam Iza entered guilty pleas in January 2025 to several charges including fraud and conspiracy against rights. His sentencing date remains pending.
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